Former Nepal deputy PM jailed over fake Bhutanese refugee resettlement scam

16 July 2026 , 08:34

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Former Nepal deputy PM jailed over fake Bhutanese refugee resettlement scam

A District Court in Kathmandu sentenced former Nepalese Deputy Prime Minister Top Bahadur Rayamajhi to four years in prison and fined him 40,000 Nepalese rupees ($260) for his role in a scheme to fraudulently resettle Nepali citizens in the United States as Bhutanese refugees.

Former Home Minister Bal Krishna Khand received a two-year prison term and a fine of 20,000 rupees ($130).

Judge Tej Bahadur Khadka convicted 15 defendants of fraud, organized crime, and crimes against the state. One additional defendant was convicted of fraud. Prosecutors filed the case in May 2023.

Tek Narayan Pandey, who was home secretary at the time of the alleged scheme, was also sentenced to four years in prison and fined 40,000 rupees ($260).

Shiva Khatiwada, an information officer at the Kathmandu District Court, told OCCRP on Wednesday that the full text of the verdict would be available within seven to 10 days.

“Usually, the court’s practice is to provide it within 21 days, but it will likely be available sooner,” Khatiwada said.

Khatiwada explained that under Nepalese law, courts do not add together all prison terms when a defendant is convicted of multiple offenses. Instead, the longest sentence is applied in full, and half of the second-longest sentence is added to it.

Khand was released on bail in December 2023, while Rayamajhi remains in custody. Both men can appeal the district court’s decision before the high court.

“Those who are already detained will remain in custody. For those whose prison terms are offset by time already served or who have paid their fines, they will be eligible for release,” Khatiwada said.

“He is never a decision-maker. He is innocent. We are waiting for the full text from the court. We’ll appeal in the high court,” Dharma Raj Regmi, Rayamajhi’s lawyer, told OCCRP.

Khand did not respond to OCCRP’s request for comment. He has previously denied involvement in the scheme.

More than 113,500 Bhutanese refugees were resettled in eight countries, including the United States, Canada, and Australia, between 2007 and 2016 under one of the world’s largest group resettlement programs, according to the United Nations refugee agency.

David Wilson

Politics Editor