The Supreme Court on Wednesday sought an explanation from the Commission for Investigation of Abuse of Authority (CIAA) for keeping suspended Inland Revenue Department (IRD) director general Chudamani Sharma in custody on a petition filed at the court demanding his release. 

A single bench of Justice Purushottam Bhandari ordered the CIAA to produce Sharma before the court on Friday morning and furnish an explanation why he was arrested and kept in detention. Attachment of the copies of documents supporting the charge against him was imperative, the order stated. 

Sharma’s wife Kalpana Upreti had filed a writ at the SC on Tuesday, demanding an immediate release of Sharma. Claiming Sharma’s detention as illegal, Upreti has argued in the petition that Sharma as the IRD chief is entitled to special rights to raise or slash the tax base and as such the CIAA does not have authority to probe the activities of the TSC.  She has also said the bail amount set by the anti-grant for his release is excessive. 

The CIAA had sought Rs3.02 billion bail from Sharma on the charge of misappropriating revenue worth over Rs9 billion. The Special Court had approved the bail money and allowed CIAA to put Sharma in custody until the bail amount was deposited.  

SC Spokesman Mahendra Nath Upadhyay said the apex court also asked the CIAA to conduct medical check-up of Sharma and ensure him required medical treatment. 

Sharma was arrested by the CIAA on June 2 for his alleged role in exempting Rs 21 billion in capital gains tax to the Ncell in questionable manner through the Tax Settlement Commission (TSC) and has been in custody since. He was the member secretary of the commission formed in February 2015.