Gyanendra Karki Gets Rs 1.5m Bail in Pokhara Airport Case
Former Finance Minister Gyanendra Bahadur Karki has been granted Rs 1.5 million bail in a CIAA corruption case involving alleged tax waivers linked to the Pokhara International Airport project.
Former Finance Minister and Nepali Congress leader Gyanendra Bahadur Karki has been granted bail of Rs 1.5 million by the Special Court in a case concerning alleged financial irregularities during the construction of Pokhara International Airport.
The order was issued by a three-member bench comprising Narayan Prasad Paudel, Dilli Ratna Shrestha and Umesh Koirala after Karki appeared before the court for a pre-trial detention hearing. The case was filed by the Commission for the Investigation of Abuse of Authority (CIAA), which has accused 14 people of involvement in alleged unlawful tax concessions connected to the airport project.
According to the case details provided, the alleged irregularities concern tax waivers totaling more than Rs 3.62 billion that benefited Chinese contractor China CAMC Engineering Company Ltd. The CIAA is seeking recovery of Rs 3,625,221,160 in alleged direct losses to the state treasury.
What the Pokhara Airport Case Alleges
The dispute centers on the tax arrangements attached to the contract for constructing Pokhara International Airport. The original contractual terms reportedly required the Chinese contractor to cover applicable local taxes from its own resources.
Investigators allege that a separate Implementation Agreement was subsequently used to provide tax exemptions that were not authorized under the original arrangement. The CIAA says this created an improper financial benefit for the contractor and resulted in a significant loss to public revenue.
The alleged amount at the heart of the case is Rs 3.62 billion. The more precise recovery figure cited by the anti-graft authority is Rs 3,625,221,160, representing the alleged direct damage to the national treasury.
- Bail: Rs 1.5 million granted to former minister Gyanendra Bahadur Karki.
- People charged: 14 individuals, according to the supplied case details.
- Alleged financial loss: Rs 3,625,221,160.
- Contractor involved: China CAMC Engineering Company Ltd.
The allegations remain matters for judicial determination. The bail order does not itself establish criminal liability, and the proceedings will determine the claims made in the charge sheet.
Fourteen People Named in the Charge Sheet
The CIAA charge sheet names 14 individuals in connection with the alleged tax-waiver arrangement. The defendants include former government officials, current officials and representatives associated with the airport project and the Chinese contractor.
- Shankar Prasad Adhikari: Former Secretary at the Ministry of Culture, Tourism and Civil Aviation.
- Suresh Acharya: Former Joint Secretary and now Secretary, who is alleged to have signed documents connected to the tax exemption.
- Sanjiv Gautam: Former Director General of the Civil Aviation Authority of Nepal.
- Pradeep Adhikari: Current Director General of CAAN, who has been accused in the case of institutional negligence and procedural bypass.
- Project officials: Three former and current project directors associated with construction of the airport.
- Contractor representatives: Local representatives and the project manager linked to China CAMC Engineering Company Ltd.
The breadth of the defendants reflects the CIAA's allegation that the disputed tax treatment involved decisions across multiple levels of the project and government administration. The case therefore extends beyond a single official or agency.
Why the Pokhara Airport Project Remains Under Scrutiny
The tax case adds another layer to scrutiny surrounding the Pokhara International Airport project. The supplied information describes the matter as the third major corruption filing involving high-profile officials over the controversial and underutilized airport project.
At the center of the latest proceeding is the question of whether tax exemptions granted during implementation were consistent with the original contractual obligations. Investigators contend that the arrangement provided an unjustified benefit to the contractor while reducing revenue available to the state.
The Special Court's decision to grant bail to Karki concerns his pre-trial status and does not resolve the underlying allegations. Further proceedings will determine how the court assesses the claims and evidence presented in the case.
Government Allocates Rs 500 Million for Foreign Ministry
Separately, the government has announced a major infrastructure plan for the Ministry of Foreign Affairs. Foreign Minister Shisir Khanal said Monday that Rs 500 million has been allocated to begin construction of a permanent headquarters for the ministry during the 2026/27 fiscal year.
The proposed headquarters will be built at the central site currently occupied by the Ministry of Home Affairs. Architectural, engineering and design consultants have already completed preliminary blueprints, with the government planning to invite competitive construction bids and begin work during the upcoming fiscal year.
The new facility is planned as more than a conventional government office. Its design incorporates security, diplomatic, technological and environmental requirements intended to support the Foreign Ministry's long-term operations.
New Foreign Ministry Building Planned as Secure Hub
The proposed headquarters is expected to combine modern construction with elements of Nepal's traditional Newari architectural heritage. The plans also call for the structure to be engineered to withstand a magnitude 8.0 earthquake, using advanced base-isolation technology as part of its seismic-resilience design.
- Security: Restricted diplomatic briefing areas with biometric access checkpoints.
- Diplomatic hosting: Dedicated VVIP reception facilities for visiting foreign dignitaries and bilateral meetings.
- Communications: An underground IT wing with encrypted communication systems for secure links with Nepal's permanent missions abroad.
- Archives: A specialized Archive Management Section for digital preservation of historic and sensitive diplomatic records.
- Sustainability: Solar power infrastructure and a wastewater recycling system.
These features indicate that the project is being designed around the specialized requirements of diplomatic work. Secure communications and document preservation are particularly important functions for a ministry responsible for Nepal's international relations.
The planned archive section is also intended to digitally preserve historic and highly sensitive diplomatic documents. Meanwhile, solar arrays and wastewater recycling are included as part of the building's environmental infrastructure.
Two Major Government Developments in Focus
The two developments highlight different aspects of Nepal's public administration. The Special Court proceeding places attention on accountability over alleged financial decisions connected to a major infrastructure project, while the Foreign Ministry headquarters plan focuses on strengthening government infrastructure for diplomatic operations.
In the Pokhara airport case, the court has granted Karki bail while the underlying allegations remain before the judicial process. The CIAA is seeking recovery of the alleged treasury loss and has brought charges against multiple officials and project representatives.
At the same time, the government is preparing to invest Rs 500 million to begin construction of a permanent Foreign Ministry headquarters in fiscal year 2026/27. The proposed building is expected to combine diplomatic facilities, high-security infrastructure, seismic protection, archival technology and environmental systems.
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