The Special Court has ordered the release of Santosh Chalise, a former lawmaker from the Nepali Congress, on a bail of Rs 500,000.
A bench comprising Judges Narayan Prasad Paudel and Bidur Koirala issued the order on Monday.
"While the case will be determined later based on the examination of evidence, release Chalise on bail for now by taking Rs 500,000 in cash deposit or an equivalent bank guarantee, and proceed with the trial," the order states.
Chalise was elected to the House of Representatives from Kathmandu Constituency No. 3 in the 2022 general election. Before that, he was elected mayor of Gokarneshwar Municipality in the 2017 local elections.
The Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against him on December 14, 2025, accusing him of amassing money illegally while serving as mayor.
The CIAA claimed an amount of Rs 36.85 million from him in damages.
The court ruled that, based on the evidence currently available, there is no need to keep Chalise in custody for the trial, and thus demanded Rs 500,000 bail from him.
Chalise has denied the charges in court, asserting that he did not earn any money illegally.
