Commission Files Corruption Case Claiming NPR 362 Crore Loss Over Tax Exemption at Pokhara Airport

The Commission for the Investigation of Abuse of Authority (CIAA) has filed a case against 14 individuals accusing them of corruption worth NPR 3.62 billion related to tax exemptions granted during the construction of Pokhara Airport. The commission alleges that the tax relief was granted without Cabinet approval and with collusion from officials within the Ministry of Finance. It further states that the decision to offer tax exemptions on an airport constructed with a loan from China violated public procurement laws and transparency standards.

The corruption case, filed last week at the Special Court, centers on the alleged breach of contractual terms during Pokhara Airport’s construction, where revenue exemptions were granted unlawfully. The accused include former Minister Gyanendra Bahadur Karki, two former secretaries, and contractors, totaling 14 individuals. The CIAA’s consolidated allegation is that these actors caused a financial loss of NPR 3.62 billion to the government by granting tax exemptions contrary to the agreement with China.

According to the CIAA’s submission to the Special Court, under the Nepal Government’s operational rules, any matter involving revenue exemption must be presented to the Cabinet for approval. The CIAA argues it was improper to include tax exemption clauses within the contract itself, circumventing formal procedures. This action caused substantial damage to the state treasury.

The commission has been systematically pursuing corruption allegations linked to irregularities in the construction of Pokhara Airport. In Mangsir (Nepali calendar month), it filed cases against 56 individuals, including five former ministers. The CIAA also claimed that the airport’s construction costs were inflated by NPR 836 million unnecessarily.