Controversial Biratnagar figure Abhishek Giri was arrested on June 27 from his residence in Madhumara, ward 8 of Biratnagar Metropolitan City. During a search of his house, police recovered a cash-counting machine, more than 50 tolas (583.19 grams) of gold and an unspecified amount of cash.

Giri was initially investigated over allegations that he had collected allowances meant for inmates of Morang District Jail. But as the investigation widened, police said they uncovered evidence suggesting his involvement in a broader network of financial dealings, alleged extortion and organised activities.

“We have found indications of his involvement in various illegal activities as the investigation has expanded. We are collecting further evidence based on those findings,” said Superintendent of Police Kabit Katuwal, chief of the District Police Office Morang.

Giri spent around 10 days in Morang Police custody before the High Court in Biratnagar on July 7 ordered authorities to continue the investigation while keeping him on personal recognisance. He was preparing to leave after the court order when a team from the Central Investigation Bureau (CIB) detained him again outside the court premises.

The CIB said it had opened a separate investigation against Giri based on a complaint filed by Hetauda-based construction entrepreneur Subash Shrestha. Shrestha has accused Giri of fraud, criminal breach of trust and obtaining unlawful benefits.

According to Shrestha’s complaint, Giri allegedly used his political connections and influence to promise government contracts in exchange for financial gains. The complaint claims that Giri later entered construction projects through Shrestha’s company, RC Suppliers and Construction, as a subcontractor and gradually took control of the business.

Police said complaints against Giri have increased since his arrest, with allegations ranging from suspicious bank transactions and forced property transfers to threats and financial coercion.

Investigators are also examining what they describe as Giri’s continued influence inside Morang District Jail even after he completed his prison sentence in 2022.

Police allege that Giri continued to control financial activities linked to the jail from outside. According to Morang Chief District Officer Yubaraj Kattel, income generated from the sale of wooden stools and carpets produced by inmates was allegedly transferred directly to accounts linked to Giri and his associates.

“Payments from the sale of products made by inmates and some allowances distributed to them appear to have been collected through his associates,” Kattel said.

Morang District Jail currently houses around 1,200 inmates, with nearly half involved in producing wooden stools and carpets. Police claim bank records show that at least Rs10.7 million generated from their labour reached accounts belonging to Giri and his associate Sanjay Kumar Mandal.

Investigators said traders from Kathmandu, including Vijay Shah, and Dilliram Pant from Chitwan, allegedly deposited payments for purchased products into bank accounts designated by Giri’s group.

Police are also investigating allegations that Rs1.36 million in summer allowances distributed to 544 inmates on June 26 was collected through intermediaries linked to Giri.

Authorities are examining possible irregularities in several financial activities inside the jail, including telephone services, food management, supply contracts, inmate labour earnings and other revenue-generating operations.

Construction dispute adds another layer

While Morang Police is investigating alleged financial activities connected to the prison, the CIB investigation is focused on a separate dispute involving the construction sector.

In his complaint, Shrestha alleged that Giri introduced himself as a politically influential person capable of securing government contracts. He allegedly gained access to projects by promising business opportunities and later increased his control over the company’s operations.

The complaint mentions the Ratuwa-Keshaliya Postal Highway project and the Biratnagar-Ghinaghat road project, alleging that Giri’s involvement shifted from business partnership to financial control and pressure.

The CIB said it was investigating allegations that Giri took control of expensive excavators, tipper trucks and other construction equipment, sold some vehicles as scrap and forced the transfer of land in Budhanilkantha, Kathmandu, to his wife, Sonu Acharya.

Investigators are also looking into allegations that blank cheques were signed, large-value cheques were later used to file complaints against business partners and legal pressure was applied to gain control over assets.

Growing property portfolio under investigation

Police have also turned their attention to Giri’s assets.

Preliminary findings show that he purchased land at at least nine locations across different districts in the past two years, according to investigators. Most of the plots in Budhanilkantha of Kathmandu, Katahari and Babiya Birta of Morang, Biratnagar and Dhankuta are registered in his wife’s name, police said.

“Even some properties purchased through bank auctions are being examined to determine the source of funds,” a police officer involved in the investigation said.

Authorities are analysing bank transactions, land purchases, possible proxy investments and financial dealings conducted through third parties.

After his release from prison in 2022, Giri attempted to build a public image through social activities, donations to schools, participation in public events and his proximity to political figures. He presented himself as a social worker.

However, investigators claim that behind the public image, his financial network remained active.

They say the alleged control over prison-linked income, interference in construction businesses, expansion of assets and suspicious banking activities point towards a wider financial operation.

Investigators are also looking into allegations that blank cheques were signed, large-value cheques were subsequently bounced to file counter-complaints against business partners, and legal pressure was applied to gain control over assets.