KATHMANDU: A charge sheet has been filed at the Special Court in Kathmandu on the charge of money laundering against four persons, including Ram Babu Mahato Koiri, the then engineer of Kathmandu Metropolitan City.

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a chargesheet against Koiri, his wife Mala Kumari Mahato, her sister Reena Kushwaha and her husband Krishna Prasad Mahato.

According to the commission, a case is already pending in the Special Court against Rambabu Mahato Koiri for the offence of amassing illegal property amounting to Rs 4,58,97,403.88. According to the commission, the commission has also investigated money laundering as a related offence related to the acquisition of illegal property.

During the investigation into money laundering, it was found that Rambabu Mahato had received Rs 19,15,514.86 from the offence even before the implementation of the Prevention of Money Laundering Act, 2064, the commission said. The commission concluded that the money laundering could not be included as the owner of the money laundering as the money laundering was not included as an offence at the time of receipt of the money.

According to the commission, the remaining amount will be Rs 4,39,81,888.14. The total amount against Rambabu Mahato has been fixed at Rs 4,48,79,841.98 crore, adding Rs 8,97,953,841.84 to the additional Rs 8,97,953.84 which was found to have been inflated by the offence.

According to the commission, Rambabu has been found to have made ‘placement’ by depositing the money earned through corruption in the accounts of banks and cooperatives in the name of himself and his family members. The commission claims that the money was then invested in the purchase of land through his wife, sister-in-law and brother-in-law and the payment was made in a mixture of cash and bank cheques with a purse less than the actual value.

Similarly, the commission has said that the money was ‘layered’ by transacting the money at different levels and different formats using cooperative loans, bank loans and bankable papers. Thus, the land purchased from the proceeds of the offence was shown as legitimate property, the charge sheet said.

According to the Commission, the proceeds of the offence were placed in fixed deposits and the interest received therefrom was also laid on the basis of claiming the proceeds as legitimate income. The Commission also concluded that the other owners had increased the property as claimed and such properties were also mentioned in their property details.

The commission has said that Rambabu Mahato has not only amassed wealth through illegal wealth acquisition but has also changed, transferred, concealed and deceived the source, form and ownership of the entire property. The commission claims that this has proved the fact that the entire amount of illegal income has been laundered.

A fine of Rs 4,48,79,841 has been imposed against Rambabu Mahato. The commission has also sought confiscation of the land under Sections 28(2) and Section 34(1) of the Prevention of Money Laundering Act and an additional 10 per cent penalty as per Section 30(7).

Similarly, Mala Kumari Mahato, wife of Rambabu Mahato, has also been involved in real estate transactions and investments from the illegal assets earned by her husband Rambabu through corruption. According to the commission, Mala Kumari has been involved in hiding, deceiving and altering the real source of such property despite knowing that the property was acquired by her husband through corruption and income was earned from the same crime.

On this basis, a fine of Rs 4,48,79,841.98 crore has also been imposed against Mala Kumari Mahato. The suit has been filed against her for double the fine and imprisonment as well as confiscation of the related lands. Reena Kushwaha, sister of Mala Kumari Mahato, and her husband Krishna Prasad Mehta have been charged with aiding, abetting, facilitating, conferring and participating in the main accused’s crime.

According to the commission, Reena and Krishna Prasad had also invested in the purchase of land from the properties earned by Rambabu Mahato and Mala Kumari Mahato. The commission claims that they had assisted in the conversion and transfer of illegal property, concealing, deceiving, altering, acquiring, using and holding the rights over such property.

The commission has also concluded that they played a role as accomplices in the diversion and purification of illegally acquired property.

On this basis, the commission has filed an offence against Reena Kushwaha and Krishna Prasad Mehta under sub-sections (2) and (3) of Section 3 of the Prevention of Money Laundering Act, 2064 and demanded half of the punishment to be given to the main culprit Ram Babu Mahato Koiri as per Section 30 (2).