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Deuba Returns to Nepal Amid Money-Laundering Case

Former Nepalese Prime Minister Sher Bahadur Deuba returned home on Thursday, 13 August, after spending nearly six months abroad for medical treatment, drawing a large gathering of supporters in Kathmandu despite an outstanding arrest warrant linked to allegations of money laundering.

The 80-year-old veteran leader of the Nepali Congress arrived in Nepal after leaving the country in February for treatment. His return had been closely watched because the authorities had issued a warrant against him in April in connection with a money-laundering investigation. Deuba has consistently denied the allegations.

Hundreds of supporters gathered along roads leading to Tribhuvan International Airport in Kathmandu to welcome the former prime minister. As he emerged from the airport, Deuba waved and smiled at the crowd, acknowledging supporters who had lined the route.

The central question surrounding his return was whether he would be arrested immediately. Nepal Police spokesman Abi Narayan Kafle said matters concerning Deuba’s case and any decision on his arrest fell under the jurisdiction of the Department of Money Laundering Investigation. He also said security arrangements were being maintained for Deuba because of his status as a former prime minister.

Deuba’s wife, Arzu Rana Deuba, a former foreign minister, has also faced an arrest warrant in connection with a similar money-laundering case. Earlier, Nepal’s Supreme Court reportedly issued an interim order preventing the couple from being arrested, adding another layer to an already sensitive legal process.

Political upheaval after youth-led protests

Deuba’s legal troubles emerged against the backdrop of major political upheaval in Nepal. A youth-led protest movement that began in September last year initially focused on opposition to restrictions on social media. It soon developed into a broader expression of public anger over corruption, economic hardship and dissatisfaction with the country’s political leadership.

The unrest escalated into violence, with government and political buildings set on fire in several places. Deuba’s residence was also attacked during the protests. Claims that large quantities of cash had been recovered from his residence circulated widely on social media, accompanied by videos purporting to show the alleged discovery.

Deuba rejected the videos as fabricated and described the allegations as part of a conspiracy. In testimony submitted to an investigation commission, he said he did not know who was behind the alleged campaign. The commission has recommended further investigation into claims concerning money allegedly recovered from Deuba’s residence and other properties.

Legal action against senior political figures

The political landscape changed significantly following the youth protests, with a new government led by Balendra Shah taking power. Authorities subsequently began pursuing legal action against several prominent political figures.

In March, former Prime Minister K. P. Sharma Oli and former Home Minister Ramesh Lekhak were briefly arrested over allegations related to the use of violence in suppressing the youth protests of 2025. The cases against senior political figures have intensified debate over accountability, political responsibility and the independence of Nepal’s legal institutions.

For Deuba, his return also carries significance within the Nepali Congress. The party is scheduled to begin a three-day national convention on Friday, 14 August, and Deuba is expected to take part. His presence could therefore have implications not only for his legal situation but also for the party’s internal political dynamics.

Deuba has served as prime minister of Nepal on several occasions and remains one of the country’s most experienced political figures. His return, therefore, comes at a politically sensitive moment, when questions over corruption, institutional accountability and the future direction of established political parties remain prominent.

The large turnout of supporters in Kathmandu also demonstrated that, despite the legal pressure surrounding him, Deuba retains a significant political base. His arrival is likely to keep both the money-laundering investigation and the future direction of Nepal’s opposition politics firmly in the public spotlight.

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