Nepal SC bars arrest of ex-PM Deuba, wife in money laundering case

Nepal’s Supreme Court on Monday (May 25, 2026) issued an interim order barring the arrest of former Prime Minister Sher Bahadur Deuba and his spouse Arzu Rana Deuba in a money laundering case.

The Bench, comprising Justice Mahesh Sharma Paudel and Nityananda Pandey, while hearing the plea filed by the couple, questioned the issuing of an arrest warrant by the Kathmandu District Court.

The Kathmandu District Court had issued arrest warrants against Mr. Deuba and his wife on April 6, who had been abroad since February 26 seeking medical treatment.

Last year, thousands of youths under the banner of the Gen Z group staged anti-government protests in Kathmandu on September 8 and 9, in which 76 people were killed. Nineteen protesters were killed during the police firing on September 8, the first day of the Gen Z protests.

The Gen Z protesters also attacked Mr. Deuba’s residence, in which the couple suffered injuries.

After the attack, video clips showing a large amount of Nepalese currency as well as U.S. dollars burnt by the agitators became viral on social media.

The Money Laundering Department investigated the incident and also prepared a forensic report based on the burnt ashes of the paper notes.

The Supreme Court observed that due process was not followed while issuing the arrest warrant against Mr. Deuba and his wife, who is also the former Foreign Minister of the Himalayan nation.

The court directed the authorities not to arrest the Deuba couple.

Nepal Police had requested the Interpol to issue a red corner notice against Mr. Deuba and his wife. However, Interpol rejected the request, citing that the documents produced by the police were not sufficient.