- Nepal’s CIAA filed a corruption case against former PM Madhav Kumar Nepal and 96 others over a land scam worth NPR 730 million.
- Rijal Canning & Company allegedly swapped prime government land for worthless plots with the help of high-ranking politicians and bureaucrats.
- Former Minister Minendra Rijal faced conflict-of-interest charges for approving the deal, which benefitted a company run by his relatives.
- The lawsuit aims to repossess 60 bighas of land and recover damages equivalent to the significant financial loss suffered by the state.
Kathmandu, Nepal: Nepal’s top anti-graft body has dragged former Prime Minister Madhav Kumar Nepal and former Minister Dr. Minendra Prasad Rijal to court, accusing them of helping a private firm unlawfully pocket government-owned land.
The Commission for the Investigation of Abuse of Authority (CIAA) filed the case at the Special Court against 97 individuals, seeking to recover NPR 730 million in damages. The commission is also demanding that the state repossess nearly 60 bighas of land spread across Sunsari and Morang districts.
How the Land Controversy Began
The story traces back to 1975, when Rijal Canning & Company was granted a special exemption to hold land above the legal limit—strictly on the condition that it would use the property to run a fruit industry.
However, the factory was never run as intended. By 1992, the government discovered the land was sitting unused and voted to seize 55 bighas of it. Although the Supreme Court later overturned that decision on procedural grounds in 1997, it directed officials to handle the matter by the book.
Instead of taking the land back into public hands as required by law, local officials unfroze key plots in Biratnagar by 2006, setting the stage for a private windfall.
A Highly One-Sided "Swap"
According to investigators, the company sold 4.25 bighas of prime real estate in Biratnagar for a whopping NPR 83.8 million.
In return, the company bought replacement land in Banigama for just NPR 1.28 million.
To make matters worse, inspectors found that the replacement land in Banigama was mostly flooded pits, riverbanks, and dirt tracks—land the company never even attempted to use. By trading valuable urban property for nearly worthless land, officials effectively allowed public wealth to be drained into private hands.
Top Politicians and Conflicts of Interest
The scheme reached the highest levels of government between October and December 2009.
The Cabinet’s Approval: The proposal was pushed to the Cabinet level under then-Prime Minister Madhav Kumar Nepal, who approved sending it to a specialized Social Committee.
Conflict of Interest: The committee was led by Dr. Minendra Prasad Rijal, who greenlit the land swap despite having direct family ties to the company's directors.
The CIAA alleges that both leaders were fully aware the land should have been nationalized, yet used their authority to bypass rules and deliver a major financial favor to a private business.
Who Else Is Implicated?
The list of 97 defendants spans politicians, bureaucrats, and private citizens, including:
Senior Officials: Former Land Reform Secretary Chhabiraj Panta, former Chief Secretary Madhav Prasad Ghimire, and former Land Reform Minister Dambar Shrestha.
Company Owners: Six directors of Rijal Canning & Company.
Land Buyers & Relatives: 42 buyers who later acquired portions of the swapped land, as well as legal heirs of deceased suspects (to recover the stolen funds).
What Happens Next?
This marks the second corruption case filed against former PM Madhav Nepal. He is already facing charges over a separate land exemption scheme involving Patanjali Yogpeeth.
Under Nepal's corruption laws, key figures face potential prison time, steep fines matching the NPR 730 million losses, and total forfeiture of the land. The case now sits with the Special Court, where judges will evaluate the evidence before delivering a final verdict.
