Kathmandu- Deepak Bhatta, a businessman long regarded as influential in Nepal’s political and business realm, has been arrested by the Central Investigation Bureau of the Nepal Police on charges related to financial crimes and embezzlement.

According to police officials, Bhatta was detained on Thursday following an ongoing investigation into alleged large-scale financial irregularities. Authorities have obtained court approval to keep him in custody for 10 days to facilitate further inquiry.

Bhatta faces multiple allegations, including misuse of bank loans, illegal mobilization of funds from public companies, and laundering of illicit earnings. Investigators claim he concealed the sources of illegally obtained income and used various methods, including stock market manipulation, to legitimize the proceeds.

Police have also identified Bhatta as a key planner behind several financial embezzlement and money laundering schemes.

Preliminary findings from the Insurance Authority indicate that Bhatta and his associates were involved in insider trading. The group allegedly purchased shares worth approximately Rs 3 billion in the name of an individual from the Himalayan Reinsurance Company-a company reportedly established with the backing of Bhatta and his network-and profited through advance access to sensitive information.

The investigation into Bhatta was reportedly initiated under the leadership of former Finance Minister Rameshwor Khanal. Sources suggest that despite Bhatta’s significant influence within government circles prior to the September 8-9  political upheaval, authorities had previously refrained from taking action against him.

Even after the political changes, there was apparent reluctance within the bureaucracy to proceed with the investigation. However, Khanal is said to have pushed for decisive action.

The case initially came to light through an inquiry conducted by the Insurance Authority. Based on its findings, along with earlier departmental investigations, police moved forward with Bhatta’s arrest, stating that a comprehensive investigation is still ongoing.