After the Commission for Investigation of Abuse of Authority set a bail amount of over Rs3 billion for the release of Chudamani Sharma, the suspended director general of the Inland Revenue Department, from custody, his lawyers have suggested that Sharma appeal to the Supreme Court for reduction in the bail amount.

It is the highest ever bail amount set by the anti-graft body from any official facing probe.

Based on irregularities totalling more than Rs9 billion claimed to have been unearthed by the CIAA during its probe into some 120 files related to tax exemption by the Tax Settlement Commission, one third of that amount was sought from Sharma, who is 

one of the three members of the TSC.

The commission chaired by chartered accountant LD Mahat had Umesh Dhakal as another member. The CIAA has issued arrest warrants in their names after they failed to present themselves at the CIAA within the deadline.

Bhimarjun Acharya, a lawyer pleading Sharma’s case, told the Post that they have advised Sharma to approach the apex court to reduce the bail amount. “There is a tradition of seeking reduction in bail from the SC if the defendants find the amount set by a lower court or a semi-judicial body too large,” he said.

Sharma and his family have refused to approach the SC so far. According to the Corruption Prevention Act-2002, the CIAA can hold a corruption-accused for up to six months in custody. “Sharma has instead told his lawyers that he would stay in the CIAA custody and write a book,” said Acharya.

Lawyers including Acharya, Shatish Krishna Kharel, Lalit Basnet and Khagendra Adhikari are advocating Sharma’s case. The anti-graft body arrested him on June 2, on the charge of misappropriating revenue and settling taxes in a questionable way.

The CIAA has been interrogating Sharma for the last 28 days for revenue embezzlement and tax settlement in a dubious way through the TSC.

In course of investigation, the CIAA has gathered more than 1,000 files concerning tax exemption. Study of all the files could take embezzled amount much higher.