Kathmandu- The Special Court has ordered the filing of a complaint against former Prime Minister Madhav Kumar Nepal in connection with the Patanjali land swap irregularities. The court will also decide on prosecuting Nepal and other accused officials.
A bench comprising Justices Narayan Prasad Poudel and Dilli Ratna Shrestha recalled the earlier decision made on December 10, 2010, and directed that government witnesses be summoned through the Special Public Prosecutor’s office. The accused have also been instructed to present their witnesses.
Background: Patanjali Yogpeeth’s Entry into Nepal
Indian yoga guru Ramdev’s Patanjali Yogpeeth expanded into Nepal seeing the potential market for Ayurvedic products. ‘Patanjali Yogpeeth Nepal’ was registered as a non-profit company in Asoj, 2064 BS, with representatives including Shaligram Singh, Ramdev, Acharya Balkrishna, Mahendra Rajendra Das, and Rajendra Singh.
The company’s articles of association included construction of laboratories, research centers, printing and publishing, and greenhouse operations, alongside social activities such as dispensaries, schools, and medicine distribution.
Land Purchase and Alleged Limit Violations
To conduct its operations, Patanjali Nepal purchased 555–557 ropanis of land across three VDCs in Kavre before obtaining official exemption from land limits. Under the Land Act of 2021 BS, land holdings are restricted (e.g., 75 ropanis in hilly regions outside Kathmandu Valley) unless exemptions are granted for industry or factory purposes.
The CIAA alleges that Patanjali’s representatives purchased land exceeding legal limits before receiving government approval and altered official documents to acquire further exemptions.
Council of Ministers’ Role Questioned
The land swap and exemption decisions were taken by the Council of Ministers, including former PM Madhav Kumar Nepal, Law Minister Prem Bahadur Singh, and Land Reforms Minister Dambar Shrestha. CIAA has questioned the legality of these approvals, citing deviations from proper procedures, including Bill Committee approvals and Cabinet decisions in 2066 BS.
Alleged Misconduct by Patanjali Representatives
Shaligram Singh, acting for Patanjali Nepal, amended the company’s articles to permit land sales, selling land before completing legal formalities. Of the Rs 42.2 million received from land sales, only Rs 17 million was reportedly reinvested, raising further suspicion.
Four Main Allegations by CIAA
- Preparation of false documents for acquiring land beyond legal limits.
- Illegal acceptance of land as collateral for loans meant to be nationalized.
- Misappropriation of land intended for public use.
- Use of dummy companies to facilitate land purchases.
The CIAA has named Madhav Kumar Nepal, former ministers, officials, and Patanjali representatives, including Shaligram Singh, as accused in various capacities. Some politicians and Patanjali owners, including Ramdev and Acharya Balkrishna, are not being prosecuted but may act as witnesses.
Historical Context and Political Implications
The case is notable as the CIAA is questioning collective decisions of the Council of Ministers—a rare step since the restoration of democracy. Earlier, similar inquiries avoided policy decisions by the Cabinet, sparking debate over the legality and political neutrality of the CIAA’s move.
Ongoing Investigations
The CIAA continues to probe transactions and asset sources, including Rs 1.12 billion allegedly brought into Nepal by Shaligram Singh. Investigations also target dummy companies and auditing irregularities. The case highlights concerns about land governance, political influence, and corruption in large-scale industrial and non-profit ventures.
