On February 4, 2024, Ichchha Raj Tamang, a former lawmaker and promoter of Civil Savings and Credit Cooperative Limited, was sentenced to three years in prison and fined Rs1.72 billion (US$ 12.84 million) for money laundering.

In the same case, the court convicted his wife, Srijana Shakya, and Keshav Lal Shrestha, one of his relatives, for money laundering. Shakya received a one-and-a-half-year jail sentence with a fine of Rs1.03 billion (US$ 7.6 million), while Keshav Lal was jailed for one year and six months with a fine of Rs256.58 million (US$ 1.9 million). The court acquitted Tamang’s two daughters, Pratiskya Tamang and Pratistha Tamang, of the charges related to money laundering.

All were accused of generating additional income by investing illegally acquired property in the real estate sector, including in Civil Homes, where he and his family members were involved. The court also ordered the seizure of properties acquired through laundered money and those whose sources could not be established, as per sections 34(1) and 28(2) of the Money Laundering Prevention Act-2008.

Tamang and other defendants in the money laundering case are also facing fraud and organized crime charges for embezzling public deposits at Civil Cooperative.

The case was initiated by the Department of Money Laundering Investigation against the six individuals for money laundering, with the filing taking place on September 1, 2022.