Former Prime Minister Madhav Kumar Nepal and 92 others have been charged with corruption in connection with a controversial land deal involving Patanjali Yogpeeth and Ayurved Company Nepal.
The Commission for the Investigation of Abuse of Authority (CIAA), Nepal’s constitutional anti-graft body, filed the case at the Special Court on Thursday, June 5, alleging large-scale irregularities and misuse of authority. The case centers on a land arrangement that allowed Patanjali to acquire land beyond the legal ceiling under government exemption and later sell it for profit—actions deemed illegal under existing laws.
According to Yagya Raj Regmi, Information Officer at the Special Court, the accused are charged with embezzlement of public property. “The company purchased land beyond the landholding ceiling at a subsidized rate and later sold it at a significantly higher price,” he said, citing the CIAA's chargesheet.
With the filing of the case, Madhav Kumar Nepal has been automatically suspended from his role as a lawmaker, raising the number of suspended members of the House of Representatives to four. Nepal is the Chairman of CPN(Unified Socialist) and represents the constituency of Rautahat 1 in the Lower House of Federal Parliament.
In 2007 (2064 B.S.), the company registered in Nepal to operate an Ayurvedic college, hospital, and herbal farm in Kavre district. As the required land exceeded the legal ceiling, the company requested a special exemption from the government.
On February 1, 2010, the Cabinet led by then-Prime Minister Nepal approved Patanjali’s request, granting permission to purchase up to 815 ropanis (approximately 41.46 hectares) of land under the landholding exemption clause.
According to the CIAA’s findings, the company eventually acquired 554 ropanis of land valued at Rs 185.8 million. It later sold a portion of this land—314 ropanis—in violation of the legal provisions. Notably, 252 ropanis of the sold land were found to be registered under a Guthi association and the company was a tenant.
Under the Land Act, 1964, the government may grant exemptions from landholding ceilings for productive industrial or business purposes. However, land obtained under such exemptions is strictly non-transferable and must revert to the state in the event of the company’s dissolution.
Despite these legal safeguards, the then-government in the same year, 2066 B.S., approved the sale of such land—a decision that is now under judicial review.
A year ago, the Parliamentary Public Accounts Committee directed the CIAA to investigate the matter after questions were raised regarding the legitimacy and process of the land sale.
