Social Welfare Act, 2049 & SWC regime
Affiliation, agreement, renewal and reporting duties — non-compliance that converts audits into criminal referrals.
Overview
Social Welfare Council scrutiny, donor audits that smell fraud, staff embezzlement of project funds, and CIAA-adjacent questions where public money flows through NGO hands — non-profits face criminal exposure precisely because they handle other people's money for public purposes.
We defend organisations and office-bearers in fund-misuse investigations, run privileged internal inquiries, regularise SWC and agreement compliance, and handle the employment and reputational fallout so programs survive the probe.
Legal framework
The Nepalese laws that govern this area — what each one does in your matter.
Association Registration Act, 2034
Constitution, office-bearer and governance records that prosecutors examine first.
Penal Code breach of trust & fraud
Project-fund diversion and false reporting prosecuted as criminal breach of trust, cheating and forgery.
Up to 7–10 yrs + compensation
Assets Laundering Prevention Act, 2064
Layering and concealment risks in cross-border grant flows and forex handling.
Imprisonment + confiscation
Labour & tax overlays
Staff fraud dismissals and grant-tax disputes running parallel to criminal files.
How we handle it
Probe triage
What triggered scrutiny — donor audit, SWC notice, staff complaint or CIAA reference — mapped before responding.
Privileged inquiry
Counsel-led fund-tracing with sequenced staff interviews and preserved financial systems.
Regulator repair
SWC renewals, agreement regularisation and donor communications rebuilt on verified facts.
Criminal defence
Office-bearer bail, statement strategy and trial defence where misuse allegations become FIRs.
Governance rebuild
Segregation of duties, approval matrices and whistleblower channels donors ask about next cycle.
Punishments at stake
Fund diversion draws breach-of-trust and fraud tariffs with office-bearer liability, confiscation and debarment risk — but documented remediation and restitution routinely reduce criminal exposure to closure.
Common questions
SWC has flagged our reports. Is that a criminal risk?
It can become one if discrepancies suggest diversion. Regularise reporting with counsel now, before a flag becomes a referral — the paper trail you build today is your defence tomorrow.
A staff member misused project funds. Report to police?
Usually yes, but sequence matters: secure systems and evidence first, take privileged advice, then file — while managing donor notification and employment action in parallel.
Are office-bearers personally liable for NGO funds?
Yes, where they authorised or knowingly permitted misuse. Governance records showing dissent, controls and prompt action are personal shields — build them before trouble.
General legal information for public awareness — not legal advice for your specific situation. Consult an advocate →