The Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against Surendra Kumar Paudel, chairman of Nepal Reinsurance Company, on Sunday.

The anti-graft body filed the case in the Special Court, alleging that Paudel and seven others embezzled public funds while serving at Udayapur Cement Company, where Paudel was then the general manager.

Paudel was appointed chairman of Nepal Reinsurance Company for a four-year term on September 5, 2025, by then Finance Minister Bishnu Paudel.

The CIAA chargesheet claims that Paudel embezzled Rs124.72 million.

Other defendants include Nawal Kishore Shah, acting general manager; Mahesh Prasad Kafle, deputy general manager; Sanjay Kumar Lal, chief of the production division; Mahesh Prasad Kafle, chief of the store division; Ravi Chandra Paudel, head of the production department; Hari Prasad Adhikari, cement production division officer; and Ram Bahadur BC, head of the sales division.

The CIAA has also claimed Rs465.27 million against Shah and Rs126.37 million against Kafle, with similar amounts sought as penalties for the remaining officials.

The allegations state that the defendants misappropriated government property, causing financial loss to the state. Investigations revealed discrepancies in clinker consumption during cement production. While records for the fiscal year 2017-18 showed 33,914 metric tonnes of clinker, a physical inspection on 26 June 2018 found only 32,785 metric tonnes, indicating that 1,129 tonnes were misappropriated.