Nepal Police on Thursday arrested businessman Deepak Bhatta in connection with a money laundering investigation.

According to the Central Investigation Bureau (CIB), Bhatta was detained from Lalitpur.

Earlier on Monday, the Department of Immigration had placed Bhatta on a watchlist, barring him from leaving the country following a request from the Department of Money Laundering Investigation (DMLI).

Authorities are investigating Bhatta, his affiliated companies, and assets under his control as part of a broader probe into alleged financial irregularities.

Bhatta, chairman of Infinity Holdings, has long been a controversial figure, with allegations of leveraging political and bureaucratic connections to secure lucrative government contracts, hydropower licences, and regulatory appointments.

The DMLI had first initiated scrutiny into Bhatta in November 2022 following reports of suspicious financial transactions. The investigation, however, had slowed under the previous administration before gaining renewed momentum after recent political shifts.

At the centre of the probe is a report by Nepal Rastra Bank’s Financial Information Unit, which flagged a Rs450 million transfer in June 2021 to Bhatta’s personal account at Siddhartha Bank from Jagdamba Steel. The transaction was not reflected in the company’s audit report.

Investigators have also identified irregularities in overdraft accounts linked to Bhatta and Infinity Holdings, including unusually high-volume transactions that exceeded standard banking limits.

Officials say preliminary findings indicate possible “layering” and “integration” of illicit funds, prompting a detailed investigation.

The probe also examines Bhatta’s alleged role in influencing high-value public procurement deals, including supplies for security forces and involvement in the Budhi Gandaki Hydropower Project awarded without competitive bidding.

Authorities are further looking into alleged links with senior political figures and regulatory bodies, as the investigation expands into possible connections with other individuals.