CPN-UML Senior Vice-chairman Bishnu Prasad Paudel has been released on recognizance.
Paudel left the Special Court after receiving his next court date of August 13.
The Special Court had ordered Paudel to remain on a regular court date rather than being detained.
A bench comprising Judges Narayan Prasad Paudel, Dilli Ratna Shrestha, and Bidur Koirala issued the order following a hearing on Friday.
The order stated: “Based on the evidence currently available, the relationship and involvement of Bishnu Prasad Paudel could not be established. The defendant has denied the alleged offenses in his statement, and it also could not be established that the defendant obtained any property or benefit through the financial transactions of co-defendant Deepak Bhatta conducted in the defendant’s name. In view of these circumstances, the available evidence shows that the provision under Section 7(c) of the Special Court Act, 2002, applies in the case of this defendant.”
The provision allows a defendant to be tried while remaining on a regular court date, or, where necessary, to be summoned or required to appear at a specified time during the proceedings.
The court therefore ordered Paudel to remain out of custody while the case proceeds, with the final outcome to be determined after the evidence is examined.
Why was Paudel arrested?
Paudel was arrested on June 22 over his alleged connection with businessman Bhatta, who is already in custody pending trial on money laundering charges. He was brought to Kathmandu in a public van the same night.
Investigators have linked Paudel to a transaction involving the sale of a 20 percent stake in Shree Ram Tobacco Industries Pvt Ltd, purchased by Himalayan Assets Management Pvt Ltd, a company under Bhatta's sole control.
Prosecutors told the court that the 20 percent shares had a book value of approximately Rs 300 million but were sold for only Rs 37.5 million.
During court proceedings seeking Paudel's detention, the prosecution argued that while serving as finance minister, he abused his political influence to facilitate the transaction and helped Bhatta launder more than Rs 262.5 million.
Prosecutors also alleged that after the discounted share transaction, Paudel facilitated the import of areca nuts for Shree Ram Tobacco Industries while serving as finance minister.
Other allegations raised during the hearing were that Paudel helped facilitate a license for Himalayan Reinsurance, assisted seven insurance companies in obtaining operating licenses, and initiated plans to secure a license for the Janakpur Cigarette Factory.
They mentioned that the Department of Money Laundering Investigation had also cited statements from Chunnu Prasad Sharma and Kamal Kishor Malpani as part of the basis for Paudel's arrest.
Sharma, a businessman who contested the last general election from Rupandehi-2 as a candidate of the Nepali Congress, reportedly told investigators that when Bhatta was brought in as a partner, then-finance minister Paudel had agreed to facilitate approvals from government agencies, support business expansion, and, in return, receive a beneficial interest through the allocation of a 20 percent stake in Shree Ram Tobacco Industries.
Prosecutors argued that this statement formed a key basis for Paudel's arrest.
The investigation also alleges that although the book value of Shree Ram Tobacco's shares was Rs 816.71 per share, 375,000 shares were sold at Rs 100 per share.
Lawyers representing Paudel have denied the allegations, arguing that he was arrested without evidence and solely on the basis of statements.
