Chencho Dema

Phajo Nidup, 38, has been implicated in 17 criminal cases involving alleged fraudulent loans. He was initially sentenced by the Time Bound Bench to 21 years, one month, and 27 days in prison. Of this sentence, five years, seven months, and 29 days are compoundable, meaning he can pay a fine instead of serving that portion, while the remaining 15 years, five months, and 28 days are non-compoundable, requiring mandatory imprisonment.

The Special Bench, established by the Supreme Court on September 5, 2022, to address various criminal and civil cases against Phajo Nidup, delivered its verdict on 17 criminal cases involving him on March 14 and 15, 2024.

However, the High Court has since partially overturned his sentence. The revised judgments were announced on October 16 and 17, with seven verdicts delivered on October 16 and six on October 17.

The High Court has imposed a new sentence of 20 years, seven months, and 13 days, starting from his second arrest on April 21, 2022. This sentence includes a deduction of six months and 24 days for the time he was previously detained following his first arrest on June 13, 2022.

The entire sentence mandates imprisonment without the option for compounding.

This decision aligns with the principle of proportionality and seeks to uphold the rule of law in the country.

The court’s judgment stated that while it exposed the susceptibility and vulnerability of the institutions involved, the audacious conduct of the defendant cannot be rewarded by allowing the compounding of the sentence. In keeping with the form and spirit of the Penal Code of Bhutan, the court prioritises public security over the defendant’s right to compound the offences.

The potential risk he poses to society upon release is considered graver and more fatal. Based on these considerations, the High Court ruled against allowing thrimthue (monetary penalty) for the non-felony sentences amounting to 5 years, 7 months, and 27 days.

The Office of the Attorney General charged Phajo Nidup with five offenses: forgery, bribery, solicitation, deceptive practices, and tampering with official documents. These offenses were committed repeatedly, resulting in 275 charges being filed against him.

The High Court upheld the Time Bound Bench’s judgments in full for all other defendants involved in the case.

Six employees of the Bank of Bhutan—Tashi Tenzin, Kezang Tashi, Dorji Wangchuk, Til Bdr Gurung, Karma Yezer, and Tek Bdr Tiwari—have been sentenced to terms ranging from one to seven years for bribery, official misconduct, and abuse of functions.

Additionally, two police officials, Lieutenant Colonel Thukten Choezang and Drimpon Karma Thinley, have been sentenced to between two and five years for bribery, tampering with documents, and abuse of functions. Thukten Choezang is required to restitute Nu 360,000 to the states while Karma Thinley must repay Nu 231,900.

Former Road Safety and Transport Authority official Nado was sentenced to eight years and five months in prison for bribery, abuse of functions, and tampering with public records. Nitra Prasad Karki, initially charged with tampering with public records, was acquitted, with the court directing his agency to take administrative action.

Phuentsholing Thromde officials Deki and Chimi Lhaden received prison terms ranging from three to five years for bribery, abuse of functions, and tampering with documents.

Three officials from the National Land Commission—Damchoe Lhendup, Rinchen Dorji, and Tsheten Dorji—were sentenced to terms between two and three years for bribery, abuse of functions, and solicitation.

Phuentsholing Drungkhag’s Sonam Rabgay and Lhamo Dema were sentenced to two to three years for bribery and commission of acts that amounted to abuse of functions. Both are required to restitute Nu 20,000 each to the state.

RICBL officials Neten Tshering and Sonam Dargay received sentences of one to two years for abuse of functions.

Nine employees of Druk PNB, including former CEO Devendra Kumar Gupta, along with Ash Bahadur Rai, Arun Putu Siri, Yonten Dorji, Tilak Chan Gimiri, Sherab Gyeltshen, Thuji Zangpo, Kezang Phuntsho, and Tshering, were sentenced to terms ranging from one to three years for abuse of functions and bribery.

BNB officials Lobzang Nima and Kinley Dorji received prison sentences of two to five years for bribery and abuse of functions.

BDBL employees Tandin Dorji and Yeshi K Tshering were sentenced to terms between two and three years for abuse of functions and bribery.

T-Bank’s Ashok Subba was sentenced to one year and two months for official misconduct.

Four employees of Zimbi Motors—Sangay Rabten, Sanjiv Nirola, Sagar Gurung, and Sangay Yonten—received sentences ranging from one to four years for bribery, solicitation, aiding and abetting, and forgery.

Additionally, 13 private individuals were sentenced to terms ranging from two months to two years for offences, including reporting false information, aiding and abetting, and deceptive practices.

Phajo Nidup has 10 working days to file an appeal against the judgment.