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Nyayapalika

Since 2020

Tuesday, 10 November 2026

Nepali editionनेपाली
Governance

Special Court seeks China Exim Bank loan and payment records in Pokhara airport tax waiver case

In the case against former finance minister Gyanendra Bahadur Karki and others, the court has ordered the debt office and aviation authority to produce loan repayment and contractor payment details.

By Nyayapalika Desk

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The terminal building of Pokhara International Airport and the road in front, at dusk.
Terminal building of Pokhara International Airport. Photo: Hariram sigdel h / Wikimedia Commons / CC BY 4.0
In this article
  1. What the court asked for
  2. The case
  3. Background
  4. Sources

The Special Court, which tries corruption cases in Nepal, has ordered government bodies to produce details of the Chinese loan for Pokhara International Airport and of payments made to the construction company, in a case alleging that an unlawful tax waiver on the project caused a loss to the state.

The order was issued on Friday 6 November (20 Kartik 2083 BS) by a bench of the court’s chair Basudev Acharya and members Dilliratna Shrestha and Umesh Koirala. It is not a judgment: it is a procedural order calling for evidence during the hearing of the case.

What the court asked for

  • from the Public Debt Management Office: details of the loan the Government of Nepal took from the Export-Import Bank of China, its repayment process and instalment records;
  • from the Civil Aviation Authority of Nepal: the bills and receipts claimed for payment by the contractor, China CAMC Engineering, and details of amounts paid and outstanding.

Ratopati and Onlinekhabar reported that details were sought from both bodies; Kantipur’s report mentioned only the Public Debt Management Office. The deadline for submitting the details and the date of the next hearing have not been made public.

The case

The Commission for the Investigation of Abuse of Authority (CIAA), the constitutional anti-corruption body, filed the case at the Special Court on 24 Baishakh 2083 BS (May 2026). It is the commission’s third case relating to Pokhara airport. The defendants are 14 individuals, including former finance minister and Nepali Congress leader Gyanendra Bahadur Karki, and the contractor China CAMC Engineering.

The CIAA alleges that the original procurement contract clearly required the contractor to pay taxes, duties and other charges, but that a later implementation agreement gave the company tax and customs exemptions, causing the state a loss of Rs 3,620,522,160 (about Rs 3.62 billion, or Rs 362.05 crore). The commission is seeking imprisonment, a fine in proportion to the amount claimed and recovery of the amount.

These are the commission’s allegations. The court has not found any defendant guilty, and the defendants will present their case during the hearing.

Background

  • 22 May 2014 (8 Jestha 2071 BS): construction contract signed with China CAMC Engineering;
  • 21 March 2016 (8 Chaitra 2072 BS): concessional loan agreement signed with the Export-Import Bank of China;
  • 1 January 2023 (17 Poush 2079 BS): the airport began operations;
  • 7 December 2025 (21 Mangsir 2082 BS): the CIAA filed its first airport case, against 55 defendants;
  • 22 March 2026 (8 Chaitra 2082 BS): a second case, concerning consultancy fees, against 21 defendants.

Sources

This report is based on the media reports listed below. It will be updated when official court documents are available.

Other reporting

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Nyayapalika Desk

The Nyayapalika editorial team.

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