Former Speaker Krishna Bahadur Mahara could face a fresh inquiry after Deputy Prime Minister and Home Minister Rabi Lamichhane on Sunday ordered police to implement a report of the inquiry commission on large-scale gold smuggling.

The commission headed by Dilli Raj Acharya, a former High Court chief judge, submitted its report on Thursday pointing out allegedly deliberate efforts by the Central Investigation Bureau (CIB) of Police not to investigate Mahara, then director general of the Department of Immigration Jhalak Ram Adhikari, and former Nepal Police chief and UML leader Sarbendra Khanal in the gold scam.

After receiving the report, Home Minister Lamichhane submitted it to Prime Minister Pushpa Kamal Dahal on Friday.

Then, the Cabinet on Friday had decided to implement the recommendations of the inquiry commission.

On Sunday, Lamichhane met with Inspector General of Police Basanta Bahadur Kunwar and CIB Chief Additional Inspector General Shyam Prasad Gyawali to discuss the issue, among other things.

“The DPM ordered the police to implement whatever recommendations have been made in the report,” said Narayan Prasad Bhattarai, spokesperson for the Ministry of Home Affairs. “Whoever needs to be investigated as per the report, will come under the net of investigation.”

The commission submitted its report after studying the lapses in police investigation into the smuggling of 60kg of gold, which was hidden inside motorcycle brake shoes last year, and 9kg of gold concealed inside electronic cigarettes in December 2022.

The District Attorney's Office filed a case against Rahul, son of former Speaker Mahara, in October last year for his suspected role in smuggling 9 kg of gold.

Previously, police had inquired with senior Mahara, who is also a vice-chair of the ruling CPN (Maoist Centre), about the smuggling of gold after he was found to be in constant touch with Chinese smugglers. Despite suspicion, police didn’t record the statement of senior Mahara in the presence of the government attorney as required by the law.

Police had adopted the same approach in the case of former prime ministers Madhav Kumar Nepal and Baburam Bhattarai concerning the Lalita Niwas land grab scam. Eventually, the two prime ministers were spared while filing the case in court.

Police officials said that the government's decision to implement the inquiry report on gold smuggling has opened the door for a fresh investigation, and Mahara could soon be interrogated on the matter.

“First, the police headquarters will give necessary instructions on how to proceed with the report’s implementation,” said CIB spokesperson SP Hobindra Bogati. We will then study the report and take necessary action to implement it.”

Now the commission’s report would be the basis for prosecuting someone allegedly involved in gold smuggling, according to police officials.

“We have to study the new evidence presented in the report and whether it is admissible in a court of law,” said SSP Dinesh Acharya at CIB.

Meanwhile, Deputy Prime Minister Lamichhane also directed the police to take the initiative to reclaim the land that earlier housed the Bansbari Leather and Shoe Factory as government property.

The CIB, which has been investigating the case, earlier claimed that events leading to the transfer of ownership of the 10 ropani (0.5 hectares) land from the then Bansbari Leather and Shoe Factory to the CG Chandbagh Residency were orchestrated with the intent of grabbing the land for its real estate value.

“The deputy prime minister instructed the police to take action to bring the land under government ownership,” Bhattarai said, talking about Lamichhane’s meeting with IGP Kunwar and CIB Chief Gyawali.

CIB officials said the investigation was ongoing, hinting that the country’s only internationally recognised dollar billionaire, Binod Chaudhary, could also be questioned about the transfer of the property.

In February, the CIB arrested Arun Chaudhary, the chairman and managing director of CG Holdings, and two others associated with the shoe factory land scam. Arun is the brother of billionaire Chaudhary, who is also a member of the federal parliament representing the Nepali Congress.

The Kathmandu District court later released all three of them on personal guarantees.

“Anyone suspected of being involved in the case may be summoned in the course of the investigation,” said CIB spokesperson Bogati.