CIAA Files Corruption Case Over Rs 12.36 Million VAT Scam

KATHMANDU, Nov 7

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case at the Special Court against two individuals accused of misappropriating Value Added Tax (VAT) worth Rs 12.36 million.

The case names Tilak Ale, a former tax officer at the Inland Revenue Office in Dharan, and Santosh Kumar Basnet, managing director of Swaminarayan Nirman Services Pvt Ltd, as the key defendants. The CIAA has demanded recovery of the embezzled amount, an equivalent fine, and jail sentences for both.

According to the anti-graft body, Sundarharaincha Municipality in Morang had awarded a contract valued at Rs 95.15 million (excluding VAT) to Swaminarayan Nirman Sewa Pvt Ltd for excavating river-based materials from the Gachhiya Khola.

The contractor was obligated to deposit Rs 12.36 million in VAT at the tax office. However, the CIAA investigation found that the amount was allegedly diverted through collusion between contractor Basnet and tax officer Ale.

The CIAA has stated that legal action has been initiated to ensure the recovery of the misappropriated funds and to hold the accused accountable under anti-corruption laws.