Date: July 15, 2026 l By Kimberly Wilson
KATHMANDU, Nepal — A court in Nepal has sentenced two former government ministers and 14 other individuals to prison after finding them guilty in a major corruption case involving forged documents that falsely identified Nepali citizens as Bhutanese refugees for resettlement in the United States. The ruling marks one of the country's most significant convictions in a high-profile political corruption scandal.
The Kathmandu District Court sentenced former Deputy Prime Minister and Energy Minister Top Bahadur Rayamajhi to four years in prison after convicting him of offences against the state, fraud, and involvement in organized crime. Former Home Minister Bal Krishna Khand was sentenced to two years in prison for his role in the scheme.
Fourteen additional defendants, including a former senior Home Ministry bureaucrat and a former Bhutanese refugee leader, also received prison sentences of up to four years. The court found they participated in a coordinated network that produced fraudulent documents to enable Nepali citizens to seek resettlement abroad by posing as Bhutanese refugees.
The fake refugee scam first came to light in 2023, triggering a nationwide investigation into an alleged network involving politicians, government officials, middlemen, and other individuals. Authorities accused the group of collecting large sums of money from Nepali citizens by falsely promising they could be resettled in the United States through an international refugee program.
The court's verdict stated that forged official documents were created to misrepresent Nepali nationals as refugees from Bhutan. While prosecutors argued that the scheme targeted U.S. refugee resettlement procedures, it remains unclear whether any Nepali citizens were ultimately resettled in the United States using the fraudulent documentation.
The scandal exploited a long-standing humanitarian issue involving ethnic Nepali residents who fled Bhutan during the early 1990s. Approximately 120,000 Bhutanese of Nepali origin sought refuge in Nepal after leaving Bhutan amid political and ethnic tensions. Since then, nearly 113,000 have been legally resettled in countries including the United States, Canada, Australia, and several European nations under an internationally supported third-country resettlement program.
Investigators alleged that members of the criminal network took advantage of that internationally recognized refugee program by attempting to insert ordinary Nepali citizens into the process using counterfeit identity documents and fabricated refugee records. The operation reportedly generated millions of Nepali rupees through fraudulent promises made to hopeful applicants. The convictions represent a major development in Nepal's broader anti-corruption efforts. The case has drawn widespread public attention over the past three years, with many citizens viewing it as a test of the country's willingness to prosecute senior political figures regardless of their influence or former positions in government.
Legal experts noted that the defendants retain the right to appeal the Kathmandu District Court's ruling before higher courts. Lawyers representing several of those convicted indicated they are reviewing the judgment and considering further legal action.
The case has also prompted renewed calls for stronger oversight of government institutions, immigration procedures, and anti-corruption safeguards. Civil society organizations have urged authorities to continue investigating any remaining individuals who may have participated in the fraudulent scheme and to strengthen protections against future abuse of refugee and immigration systems.