Nepal Supreme Court to Review Bail Order in Pokhara Airport Corruption Probe

The Supreme Court of Nepal is now reviewing a critical appeal.

This appeal challenges a lower court's decision. The Commission for the Investigation of Abuse of Authority (CIAA) filed the motion. It contests the Special Court's order granting bail to several defendants. These defendants include Pradip Adhikari, the former Director General of the Civil Aviation Authority of Nepal (CAAN).

Background of the Corruption Case

The case centers on alleged massive irregularities. These issues occurred during the construction of the Pokhara International Airport (PIA). The CIAA filed a charge sheet against 55 individuals and one company. This makes it one of the largest corruption cases in Nepal's history.

Financial Allegations and Key Entities

The anti-graft body seeks to recover approximately NRs 8.36 billion from the defendants. This amount is equivalent to about USD 74.34 million. The CIAA alleges that officials colluded with the contractor. This action supposedly inflated the project cost abnormally.

The airport project was a major infrastructure effort. It was a China-funded turnkey project. The total cost was approximately USD 216 million. The Chinese contractor, China CAMC Engineering Co. Ltd., is also a defendant. The case highlights the complex nature of Nepal airport development funding.

The Special Court's Bail Ruling

In December 2025, the Special Court issued its ruling. A bench ordered the release of Pradip Adhikari on bail. The bail amount was set at NRs 500,000. The court noted that the allegations were serious. However, it concluded there were insufficient grounds to remand the officials. This was based on the project's multi-year nature. It also considered the limited period of responsibility for the defendants.

CIAA Challenges Special Court

The CIAA immediately challenged this ruling. Prosecutors argued that the bail order was too lenient. They claimed it could compromise the aviation integrity investigation. The anti-graft body insists on the gravity of the alleged financial loss. The Supreme Court bail order review is crucial. It will set a precedent for high-profile corruption cases.

Impact on Aviation Governance

This legal battle underscores the challenges in aviation governance and oversight. The Civil Aviation Authority of Nepal (CAAN) is the nation's primary aviation regulator. The involvement of its former Director General in a major corruption scandal raises concerns. It affects public trust in national pride projects.

• Risk: The ongoing legal uncertainty could delay crucial regulatory decisions.
• Challenge: The case highlights the need for stricter procurement laws.
• Opportunity: The abuse of authority commission's action signals stronger accountability.

International aviation bodies like the International Civil Aviation Organization (ICAO) emphasize transparency. This case is being watched closely by foreign investors. It will determine the judicial system's stance on large-scale financial crimes. The final decision by the Supreme Court will have a significant impact. It will affect the future of infrastructure projects managed by CAAN. The Chinese contractor's parent company, Sinomach, is also implicated, adding an international dimension to the probe.

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