KATHMANDU: The high-profile Fake Bhutanese Refugee Scam, widely described as one of the most disgraceful and organized crimes in Nepal’s history, remains entangled in the judicial process, with the case yet to reach a final conclusion.
The issue has resurfaced in public discussion after the government led by Balendra Shah came to power following the March 5 elections. The new administration has begun reopening several cases involving corruption and money laundering, prompting speculation that further investigation into the refugee scam could also move forward.
The case had drawn national attention after allegations emerged that a network of politicians, bureaucrats and middlemen fraudulently sent Nepali citizens abroad by falsely identifying them as Bhutanese refugees eligible for third-country resettlement.
Background of the refugee crisis
Between 1990 and 1992, thousands of Nepali-speaking Bhutanese fled southern Bhutan due to state repression and entered Nepal via India. The government, with support from the United Nations High Commissioner for Refugees, established seven temporary refugee camps in Jhapa and Morang districts.
More than 100,000 refugees lived in the camps for over a decade. Later, an international resettlement program sent them to several countries including the United States, Canada, Australia, New Zealand, Denmark, Norway, United Kingdom and Netherlands.
By 2019, a total of 113,307 refugees had been resettled abroad, with the largest number moving to the United States. However, according to UNHCR data, 6,577 refugees remained in camps such as Beldangi and Sanischare or outside the camps.
Formation of task force and alleged fraud
In 2019, during the tenure of then prime minister KP Sharma Oli and home minister Ram Bahadur Thapa, the government formed a task force to identify a permanent solution to the remaining refugee issue.
The task force was coordinated by former joint secretary Bal Krishna Panthi, with Ganesh Bahadur KC as an expert member and Deepak Prasad Neupane as member secretary.
Police later alleged that the scheme to send Nepali citizens abroad by falsely identifying them as Bhutanese refugees began during the process of forming this task force.
Investigation and arrests
The case formally surfaced in June 2022 after dozens of victims filed complaints at the Kathmandu Valley Crime Investigation Office claiming they had been defrauded.
A major investigation began after Manoj KC took charge of the office in late 2022.
On March 26, 2023, police first arrested suspects, including Keshav Dulal, Sanu Bhandari, and Tanka Gurung. Their statements later led investigators to arrest several high-profile figures, including former ministers Bal Krishna Khand and Top Bahadur Rayamajhi.
During the investigation, suspects also named several influential figures, directly or indirectly, including Arzu Rana Deuba, Prem Kumar Rai and others, though many of those names were not included in the final charge sheet.
On May 24, 2023, police filed a case against 30 defendants at the Kathmandu District Court. On June 16 that year, the court ordered 16 of them—including two former ministers—to remain in custody for trial.
Subsequently, the Patan High Court partially overturned the detention order, allowing some accused, including Khand, to be released on bail.
Case still pending
Additional complaints later led to supplementary cases being filed against other suspects, including Bechan Jha. The court has merged these cases with the original trial.
Several defendants currently in custody have also approached the Supreme Court seeking release on bail or regular date-based hearings.
Debate over further investigation
As the case continues in court, debates have intensified on social media over whether individuals previously named in statements but excluded from the investigation should face fresh scrutiny.
Since assuming power with a near two-thirds majority, the government led by Balen Shah has launched investigations into several corruption and financial crime cases. This has fueled speculation that the controversial refugee scam could also see renewed investigation targeting those who were allegedly spared earlier due to political power dynamics.
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