The Kathmandu District Court has ordered the release of businessmen Deepak Bhatt and Sulabh Agrawal on bail in a case involving alleged violations of Nepal's Insurance Act and Securities Act. However, the two will remain in custody because other legal cases against them are still pending.

Following a detention hearing, the bench of Judge Shiv Prasad Acharya ordered Sulabh Agrawal to post Rs 58 million in bail, while Deepak Bhatt was ordered to furnish Rs 25 million.

According to the court order, Agrawal must deposit Rs 20 million and Bhatt Rs 15 million in relation to alleged offences under the Insurance Act. For the securities-related offences, Agrawal has been asked to post an additional Rs 15 million, while Bhatt must deposit Rs 10 million.

The court also ordered an additional Rs 23 million bail for Sulabh Agrawal in a separate case involving allegations that founder shares of Himalayan Reinsurance were sold using forged assignment documents.

Although the court has granted bail in these cases, both individuals are expected to remain in custody because of other ongoing legal proceedings.

The case has drawn significant attention within Nepal's insurance and capital market sectors, highlighting concerns over founder share transactions, document authenticity, and regulatory compliance. The final outcome will depend on the court's decision after the remaining legal proceedings are concluded.