KATHMANDU, Sept 18: The recovery of massive stacks of cash from the private residences of two former prime ministers has shaken Nepal’s political establishment and reignited debate over corruption at the highest levels of power.
During the recent Gen Z protests, demonstrators reportedly stumbled upon and either looted or burned bundles of currency worth millions from the homes of Nepali Congress (NC) President and former Prime Minister Sher Bahadur Deuba; Ganga Dahal, daughter of CPN (Maoist Center) Chairman and former Prime Minister Pushpa Kamal Dahal; and former Minister for Energy, Water Resources and Irrigation Deepak Khadka. Deuba’s spouse, Arzu Rana Deuba, had also served as foreign minister in the erstwhile KP Oli-led government, while Ganga currently runs former Prime Minister Dahal’s personal secretariat.
Along with the cash, several kilograms of gold—worth millions of rupees—were also reportedly discovered. In the days that followed the Gen Z protests on September 8 and 9, footage showing burnt banknotes, including foreign currency, as well as clips of people looting the money and gold from the private residence of these leaders, has gone viral on TikTok and other social media platforms.
The revelation has triggered outrage and urgent calls for an investigation into how such colossal sums of money and precious metals could be stored privately by politicians with no transparent income sources. “Ordinary citizens are struggling with inflation and unemployment while leaders hoard millions in cash. This is proof of how deep corruption runs in Nepal,” said a Kathmandu-based Gen Z activist who joined the recent demonstrations.
Under Nepal’s Department of Money Laundering Investigation (DMLI) Act, any cash holdings exceeding one million rupees are subject to scrutiny, and individuals must disclose legitimate sources of income. Failure to do so constitutes a punishable crime under the Revenue Leakage (Investigation and Control) Act, 2052 BS.
Former officials say the scale of cash discovered raises red flags that cannot be ignored. “If we are able to file cases against a few high-profile politicians under money laundering charges, it will send a strong message to the international community that Nepal is serious about financial governance,” a former DMLI officer told Republica on condition of anonymity.
The scandal comes at a sensitive time, with Nepal still listed on the Financial Action Task Force (FATF) grey list, which designates countries failing to adequately combat money laundering and terror financing. Analysts warn that inaction against political elites accused of hoarding illicit wealth could further damage Nepal’s credibility and isolate its financial system internationally.
“Taking legal action against leaders hoarding illegal wealth could be a game-changer,” said a senior official, asking not to be named. “It would help restore confidence both among citizens and international observers and aid Nepal’s removal from the grey list.”
Ironically, Nepal’s financial regulations already demand strict monitoring of large cash transactions. Banks and financial institutions are required to report any withdrawal or deposit exceeding one million rupees to the Financial Information Unit (FIU) under Nepal Rastra Bank. In fact, NRB issued a circular mandating that any transaction worth one million rupees or more must be conducted through financial institutions or banking instruments beginning July 17, 2017, in order to contain money laundering and other illegal activities. The existence of unaccounted millions in private residences suggests that leaders bypassed these safeguards entirely, raising suspicions of corruption, kickbacks, and abuse of office.
For many Gen Z activists and others, the discovery of these hidden cash piles has become a metaphor for entrenched impunity in Nepal’s political class. Citizens are demanding swift accountability. “The leaders must not be allowed to walk away again. Legal cases should be initiated immediately,” said a senior government official. “This is possible once the current government leadership issues clear instructions to initiate an investigation into the matter.”
As pressure mounts, all eyes are now on state agencies like the DMLI and the Department of Revenue Investigation. Whether they move decisively or remain silent will test not just Nepal’s commitment to fighting corruption but also its ability to convince the world that the rule of law still prevails in Nepal.