The Nepali Congress has purchased a prime plot of land adjoining its central office in Sanepa, Lalitpur, in a move it says will help expand and better organise its headquarters. But the acquisition, along with recent controversies involving other political parties, has once again sparked debate over transparency in political financing in Nepal.

The newly acquired property, totalling approximately 19 aana (0.06 hectares) includes a three-storey residential building and was previously owned by Amir Man Amatya of Lalitpur.

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The purchase agreement was formalised on June 25 in the presence of party General Secretaries Gagan Thapa and Bishwo Prakash Sharma, and Treasurer Umesh Shrestha. According to a party statement, the total cost of the land and house is Rs 130 million. The party paid an initial down payment of Rs 5 million, pledging to complete the registration process within one year.

To finance the purchase, the Congress plans to mobilise funds through membership fees across various organisational levels and seek contributions from its well-wishers. However, this financing strategy has drawn scrutiny, with some observers warning of the potential for future conflicts of interest—especially amid the growing influence of interest groups in Nepali politics.

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The UML Controversy

The concerns echo a similar controversy last year involving the CPN-UML, which accepted a large “donation” of land and infrastructure from a prominent businessman. Min Bahadur Gurung, the owner of Bhat-Bhateni Supermarket, donated 10 ropani and 14 aana (0.55 hectares) of land in Kirtipur and pledged to construct the party’s new headquarters there.

Prime Minister and UML Chair KP Sharma Oli laid the foundation stone for the new office on Gurung’s property in October, 2024. The move sparked widespread criticism, including from a few party leaders, who feared the “donation” undermined the party's credibility and autonomy.

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UML Standing Committee member Binda Pandey, Central Committee member Usha Kiran Timilsina, and senior leader Bhim Rawal publicly objected. “It is wrong for a political party to accept such donations, and equally wrong for a businessperson to offer them,” Pandey wrote on social media.

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But, the party responded with disciplinary action: Bhim Rawal was expelled, and both Pandey and Timilsina were suspended from party responsibilities for six months. The leadership cited their public dissent and, in Rawal’s case, a history of challenging Oli’s decisions.

A writ petition filed by advocate Gyan Bahadur Basnet challenged the legality of Gurung’s “donation”. The Supreme Court initially halted the ownership transfer on October 28, through a short-term interim order, stating that the gift appeared “prima facie not in accordance with the law.” However, on December 16, a bench of Justices Abdul Aziz Musalman and Bal Krishna Dhakal dismissed the petition, clearing the way for the UML to proceed with its party headquarters plan.

Meanwhile, on June 25, the UML lifted the suspensions of Pandey and Timilsina.

Political Money, Public Risk

These developments have reignited discussions about the influence of money in Nepali politics. Observers argue that unregulated political financing has become a key driver of corruption, weakening democratic norms and distorting public policy.

The High-Level Economic Reforms Recommendation Commission, chaired by former Finance Secretary Rameshore Khanal, highlighted these concerns in its report. It urged sweeping reforms in how political parties raise and report their finances.

“Political leaders and parties depend heavily on opaque private contributions, shaping their policies to serve special interests rather than the public good,” the report stated. “This has led to the capture of public institutions and the erosion of democratic norms.”

Speaking at the 9th NewBiz Conclave & Business Excellence Awards in Kathmandu on June 26, Khanal warned that good governance and sound economic policy cannot be achieved without fixing the country’s political finance model.

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“No economic policy, no matter how well-crafted, can succeed without addressing the root causes of poor governance,” he said. “At the heart of this dysfunction is the way political campaigns are financed. Unless we fix this, policies and laws will continue to favour cartels and special interest groups.”