Nepal's Special Court Demands NPR 1 Crore Bail in Landmark NPR 3.78 Billion Money Laundering Case Against Rishiraj Mor

In a significant development for Nepal's financial and legal landscape, the Special Court has ordered Rishiraj Mor, the primary defendant in a high-profile money laundering case exceeding NPR 3.78 billion, to post a bail of NPR 1 crore. This directive, issued by a bench comprising Judges Narayan Prasad Paudel, Dilliratna Shrestha, and Umesh Koirala on Shrawan 21 (August 6, 2024), follows extensive detention hearings and underscores the judiciary's firm stance against financial misconduct.

The allegations against Mor are substantial and multifaceted. He stands accused of misusing funds belonging to Himalayan Re-insurance Company Limited, a public entity, to artificially inflate share prices in the securities market. Furthermore, he is charged with concealing illegally acquired wealth, a core component of the money laundering accusation. The Special Government Attorney's Office initiated the legal proceedings against Mor, claiming a disputed amount (bigo) of NPR 3,78,82,75,622.90, and has filed the case under the provisions of the Asset Laundering Prevention Act, 2064.

The charges detail a sophisticated scheme of market manipulation and financial impropriety. According to the indictment, Mor allegedly colluded with other defendants to orchestrate a scenario that caused financial detriment to Himalayan Re-insurance. This involved manipulating the stock market to create an artificial surge in share prices. It is further claimed that Mor, on various occasions, diverted funds from Himalayan Re-insurance to purchase shares in his own name. The prosecution asserts that he collaborated with Bhrikuti Stock Broking Company Pvt. Ltd. to influence market dynamics, thereby generating substantial illicit profits.

To obscure the origins of these illegally acquired funds, Mor is accused of engaging in deceptive practices and concealing the true nature of his assets. These actions form the basis of the money laundering charges, prompting the court to advance the legal process against him.

During his testimony before the court, Rishiraj Mor vehemently denied all accusations, asserting his innocence. He maintained that he is merely an ordinary share investor who conducted transactions by utilizing margin facilities provided by brokers, and therefore, he should be acquitted of the charges. However, the court, after a thorough review of the evidence presented in the case file, the details of the complaint, and the transaction records involving Bhrikuti Stock Broking, concluded that it could not immediately deem him innocent.

Consequently, the court ordered Mor to furnish a cash bail of NPR 1 crore or an equivalent bank guarantee to secure his release on a specified date. The order explicitly states that failure to comply with this bail requirement will result in his immediate detention and transfer to prison. This decision highlights the court's commitment to ensuring accountability in cases of alleged financial fraud and market manipulation.

The legal battle saw robust representation from both sides. Deputy Attorney Badri Kumar Karki argued on behalf of the Nepal Government, while Senior Advocate Shambhu Thapa, alongside Advocates Samir Sharma and Raman Kumar Karna, represented Rishiraj Mor. This high-stakes case is expected to have significant implications for corporate governance and regulatory oversight within Nepal's capital market, reinforcing the importance of transparency and investor protection.