The government’s money laundering investigation into three former prime ministers—Sher Bahadur Deuba, KP Sharma Oli and Pushpa Kamal Dahal—along with former ministers Arzu Rana and Deepak Khadka and their family members, has entered an intensified phase, even as members of the Deuba family remain abroad.

The Department of Money Laundering Investigation (DMLI) is pursuing the probe through the Central Investigation Bureau (CIB) of Nepal Police. Former minister Khadka was arrested on Sunday, and the Kathmandu District Court has granted seven days’ custody for investigation.

Separately, Oli and former home minister Ramesh Lekhak are also under investigation for “offences against life” in connection with the suppression of the September 8-9 Gen Z-led protests. The Kathmandu District Court has remanded them to five days’ custody. The money laundering probe against Oli is proceeding alongside these charges, while Dahal is also under investigation.

Among those implicated, the family of former prime minister Deuba is currently outside the country. Deuba, his wife Arzu Rana Deuba, and their son Jaiveer Singh Deuba are reported to be in Hong Kong, having travelled via Singapore.

According to Deuba’s personal secretary and nephew, Bhanu Deuba, the couple is in Hong Kong for medical treatment. “The former prime minister has a follow-up this Thursday, while the former foreign minister is undergoing treatment after doctors recommended knee surgery,” he said, adding that their return will depend on medical advice.

With Deuba abroad, questions have arisen over how the investigation will proceed. CIB chief Additional Inspector General Manoj KC said the process would continue in accordance with the law, regardless of the suspect’s location.

“In cases where arrest is necessary but the accused cannot be found, we use diplomatic channels and Interpol mechanisms,” KC said. He declined to comment on specific individuals but confirmed that the investigation was progressing.

The probe stems from evidence, including fragments of burnt currency notes recovered from the residences of Deuba, Dahal and Khadka following the September unrest. Although Oli’s residence in Balkot was also torched, no burnt cash was reportedly found there.

Based on these findings and filed complaints, authorities launched a preliminary inquiry into possible money laundering, which has since moved into a detailed investigation. While Khadka is in custody and Oli is under detention in a separate case, the Deuba family remains abroad.

During the protests, Deuba’s residence in Budhanilkantha was vandalised and set on fire, with reports that important documents, including passports, were destroyed. The couple were assaulted by demonstrators and later rescued by the army before receiving hospital treatment. They subsequently obtained new ordinary passports on September 19.

Records show that Deuba travelled to Singapore for treatment on October 27, returning on November 14. Arzu later travelled to New Delhi on January 5 for personal reasons. In late February, ahead of scheduled elections, Deuba again left for Singapore for treatment, with Arzu joining him from India.

The couple’s travel coincided with political developments within the Nepali Congress, where internal disputes culminated in a leadership change following a Special General Convention led by general secretary Gagan Thapa. Deuba’s faction was ‘sidelined’ after the new leadership took charge.

Authorities have also extended the investigation to relatives. Deuba’s son Jaiveer, nephew Prakash Bahadur Deuba, and Arzu’s brother Bhushan Rana are all reported to be abroad. Immigration records show that Jaiveer travelled frequently to Thailand and has not returned since early September. His current location is believed to be Hong Kong, though official records do not confirm his route.

Prakash Bahadur Deuba, a Sudurpashchim Provincial Assembly member, is believed to have travelled to India by land and then to the United States. He has not attended the Provincial Assembly since July 2025, and his salary and benefits have been suspended since February after prolonged absence.

Bhushan Rana had left the country prior to the September protests. The DMLI raided his residence in Jawalakhel, Lalitpur, on September 28, seizing documents and equipment, and conducted similar searches at other properties linked to the Deuba family.

Rup Narayan Bhattarai, former director general of DMLI, said money laundering investigations are complex and hinge on establishing the underlying offence and tracing how illicit funds were processed. If suspects are abroad, investigators may request their return, issue public notices, or seek an Interpol Red Notice.

However, he noted that repatriation depends on cooperation from the country where the suspect is located and the effectiveness of diplomatic engagement.

Krishna Prasad Paudel, former official at the Congress central office, said the couple’s return would depend on their medical condition. “They will return once treatment is completed. Their travel abroad is purely for health reasons,” he said.

The investigation comes amid the government’s broader push to examine the assets of former high-ranking officials. Under a 100-point governance reform plan introduced by the administration led by Prime Minister Balendra Shah, authorities have pledged to scrutinise the wealth of political leaders and officials who have held power since 1991.

The DMLI began preliminary inquiries six months ago, and the probe has now expanded to include multiple former prime ministers, ministers and their families, marking one of the most extensive anti-money laundering investigations in recent years.