Managing Director of Nepal Oil Corporation (NOC) Gopal Bahadur Khadka resigned on Thursday, nine months after being transferred over a controversial land deal to the reserve pool of the Ministry of Supplies where he was only allowed to sign the attendance register daily.

Khadka has been accused of embezzling Rs800 million in a land purchase deal for NOC’s oil storage plants. He had made several unsuccessful attempts to return to the helm of the state-owned oil monopoly.

On September 18 last year, the Cabinet sacked Khadka from his position under the recommendation of the then supplies minister Shiva Prasad Mandal. However, the Supreme Court ordered his reinstatement. Subsequently, Mandal transferred him to the reserve pool.

“There are a number of powers trying to defame me,” Khadka told a press conference where he announced his resignation. “I tried to strengthen NOC by boosting its financial health and moved to increase the capacity of the corporation by boosting its stock. But I was made a victim.”

Ministry officials said Khadka had been currying favour with Jayant Chand, who succeeded Mandal as supplies minister, to send him back to NOC, but without success. He then tried to persuade Matrika Yadav, the incumbent Commerce, Industry and Supplies Minister. “Helpless Khadka had to resign after Yadav did not entertain his pleas,” said the officials.

Khadka announced his resignation when the Commission for the Investigation of Abuse of Authority (CIAA) has been probing him.

Following a preliminary investigation, the anti-graft body found out that Khadka and a number of NOC officials were involved in the land purchase scam. Khadka is due to retire in six months. He landed in controversy after he initiated the process of buying land plots worth Rs1.61 billion in Bhairahawa, Chitwan, Sarlahi and Jhapa.

NOC purchased the land as part of its plan to expand oil storage facilities in all seven provinces to maintain fuel stocks for at least 90 days. The existing storage plants hold fuel sufficient for only a week.

A report of the then sub-committee under the parliamentary Industry, Commerce and Consumer Welfare Committee had shown that NOC paid three to four times more than what the brokers had paid to the landowners.

The panel’s report also showed involvement of the NOC top brass, middlemen and local administrative chiefs in the land deal. Separate probes conducted by five parliamentary committees and the Ministry of Supplies also revealed Khadka’s involvement in irregularities while buying land.

Apart from the land purchase deal, Khadka had made several controversial decisions. He has been charged with raising up to Rs70,000 per cooking gas bullet while issuing operation permits. He issued licences to 17 gas bottling plants in a questionable move and hit the headlines. He has also been accused of issuing licences to 334 new gasoline stations without conducting a proper study.