The Supreme Court (SC) on Friday ordered the Commission for the Investigation of Abuse of Authority (CIAA) to release suspended Director General of Inland Revenue Department (IRD) Chudamani Sharma on general date.

A full bench of Justices Deepak Raj Joshi, Dip Kumar Karki, Kedar Prasad Chalise, Shardha Prasad Ghimire and Anil Kumar Sinha issued the directive responding to a habeas corpus writ filed by his wife Kalpana Upreti Sharma on July 11 demanding the release of her husband.

In the petition, Kalpana has argued that Sharma’s detention is illegal and that he should not subjected to interrogation from CIAA for using the power granted by law on Tax Settlement Commission (TSC). She has also claimed that bail amount sought by the anti-graft body was too high.

Following the apex court decision, the corruption case against Sharma will be dealt the Special Court. 

The CIAA has said that the bail amount was sought from Sharma 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 TSC.

The anti-graft body had sought Rs3 billion in bail, the highest ever bail amount, for his release but his failure to post the amount, forced him to remain in CIAA custody.

The CIAA on June 3 had arrested Sharma on the charge of misappropriating revenue and settling taxes in a dubious way.