Kathmandu, June 24, 2026 — Nepal’s former finance minister Bishnu Prasad Paudel has been arrested in connection with a money laundering investigation, according to police and local media reports, in the latest high-profile move by the country’s Gen Z-backed government against alleged corruption under previous administrations.yahoo
Police said Paudel, 66, was detained late on June 22 from a hotel in western Nepal and was being transported to Kathmandu to be handed over to the Department of Money Laundering Investigation . A separate local report said he was taken from a party event in Birendranagar, Surkhet, after a request from the Department of Money Laundering Investigation, with officers reportedly escorting him by road toward Nepalgunj because no direct flight was available .
Paudel is a senior leader of the Communist Party of Nepal (UML) and a key figure in the former government led by K.P. Sharma Oli . He has held multiple ministerial roles across successive governments, making his arrest especially significant in Nepal’s volatile political environment . Authorities have not publicly disclosed the specific allegations behind the money laundering probe, and Paudel could not be reached for comment, Reuters reported .
The arrest comes amid a broader crackdown on alleged wrongdoing linked to former administrations . Reuters reported that the current government, led by Prime Minister Balendra Shah, has pledged action against past abuses after deadly anti-graft protests earlier this year that left at least 76 people dead and more than 2,500 injured, while several government buildings, including Parliament, were set on fire . The same report said Oli and his home minister were arrested for failing to prevent the violence and are now out on bail .
The timing of Paudel’s arrest adds to the pressure facing Nepal’s political establishment, which has already been under scrutiny from anti-graft institutions. In recent months, officials have intensified corruption and money laundering probes involving senior political figures, reflecting a wider effort to pursue cases tied to public assets, business links and previous infrastructure deals.nampa+1
According to the local report, investigators had searched Paudel’s residence in Bhaisepati, Lalitpur, before the arrest and seized documents considered relevant to the inquiry . That report also said the CPN-UML had not issued an immediate official response, while party leaders were expected to discuss the matter after the detention .
The case is likely to carry consequences beyond the legal process. As one of the most recognisable opposition figures in Nepal, Paudel’s detention could sharpen partisan divisions and raise fresh questions about how far the government is willing to push its anti-corruption campaign. It also places money laundering enforcement back at the center of Nepal’s national political debate, at a time when public anger over accountability remains high.kathmandupost+1
For now, the investigation remains at an early stage, and authorities have not announced formal charges in the public reports reviewed. The coming days are likely to determine whether the case expands into a broader prosecution or remains one of several politically charged corruption inquiries currently unfolding in Nepal.