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The investigation into the assets of three former Prime Ministers–Sher Bahadur Deuba, KP Sharma Oli and Pushpa Kamal Dahal–has moved forward. 

The probe gained momentum after the Department of Money Laundering Investigation directed the Central Investigation Bureau (CIB) to move ahead with it. 

According to the CIB’s correspondence,Congress leader and former Energy Minister Deepak Khadka was arrested on Sunday to investigate the case.

The swearing-in of Balendra Shah as Prime Minister marks a dramatic shift in Nepal’s political landscape, followed swiftly by bold actions from his administration. Within a day of assuming office, his government ordered the arrest of former Prime Minister KP Sharma Oli and former Home Minister Ramesh Lekhak, holding them accountable for the deaths of 19 youths during the September 8–9 protests, based on findings from an investigative panel.

These arrests triggered widespread backlash. The Communist Party of Nepal (Unified Marxist–Leninist) launched nationwide protests, while the Nepali Congress also raised objections, citing concerns over the lack of due process. Legal experts have similarly argued that proper legal procedures were not followed in the arrests of Oli and Lekhak.

At the same time, the government intensified its anti-corruption drive by initiating money laundering investigations against top political figures. This included the arrest of Dipak Khadka after a large amount of allegedly illegal cash was discovered at his residence during the Gen Z protests. According to local media reports, the Balen administration has also begun investigating the assets of former prime ministers, including Sher Bahadur Deuba.

Alongside these crackdowns, the Shah-led cabinet unveiled an ambitious “100 tasks in 100 days” reform agenda aimed at restructuring the bureaucracy and depoliticizing state institutions. The government has also pledged to establish a new commission to fully investigate the September 9 protests, addressing gaps left by earlier inquiries, and announced plans to form a powerful body to scrutinize the assets of public officials dating back to 1990. Other initiatives are focused on improving public service delivery.

Meanwhile, a rift has escalated within the Nepali Congress. A special general convention held in January reportedly removed Sher Bahadur Deuba from party leadership and elected Gagan Kumar Thapa as the new party head. In response, the Deuba faction filed a case challenging the legitimacy of the convention. Both factions have since been conducting parallel political activities, deepening the party’s internal crisis.

​​​​Former Home Minister Ramesh Lekhak was produced before the Kathmandu District Court on Sunday to extend his remand, a day after he was arrested in connection with the investigation into the Gen Z protests. 

He was first taken to the public prosecutor's office before being presented in the court. 

Lekhak and former Prime Minister and CPN-UML Chairman KP Sharma Oli were arrested while implementing the report of the inquiry commission formed to investigate the Gen Z unrest.

Following the arrest, Oli has been admitted to the Maharajgunj-based Tribhuvan University Teaching Hospital while Lelhak is in police custody.

The arrests were made shortly after a high-level meeting involving Prime Minister Balen Shah, Rastriya Swatantra Party President Rabi Lamichhane and Home Minister Sudan Gurung. 

Immediately after the meeting, Home Minister Susan Gurung directed Inspector General of Police Dan Bahadur Karki and Inspector General of Armed Police Force Raju Aryal to arrest Oli and Lekhak. 

Nepali Congress leader and former minister Deepak Khadka has been arrested on Sunday. 

The Central Investigation Bureau (CIB) of Nepal Police arrested former minister Khadka this morning. 

The former minister Khadka has been taken into custody for investigation into a money laundering case, confirmed CIB spokesperson, Senior Superintendent of Police (SSP), Shiva Kumar Shrestha.