The report prepared by the Commission of Inquiry, chaired by former Deputy Governor of the Nepal Rastra Bank, Love Raj Sharma, regarding the misuse of foreign currency through letters of credit (LC), was submitted to the government on 27 Jestha 2053 BS.

The report submitted to the then Finance Minister Dr. Ram Sharan Mahat was made public on 2053 Ashar 9. The Commission of Inquiry investigated 6,000 LCs, or 32 percent, out of the nearly 16,000 registered and put into operation from 2051 Shrawan to 2052 Kartik. During the investigation, it was found that 36,156,797 US dollars had been misappropriated. According to the details mentioned in the report, action should have been taken against more than a hundred accused in the LC scam. The list of names of the scamming firm, its directors, bank and bank employees was also made public in the report of the commission. Although the government had promised to take action against the accused, questions were being raised about the political leadership in the LC scam as those arrested were absconding. The government was criticized from the citizen level for giving the accused an opportunity to abscond without being arrested.

Despite the report being made public and providing all the details related to the scandal, the government showed no interest in arresting the accused, so the MPs, including the Chairman of the Public Accounts Committee of the House of Representatives, published a statement demanding that those who helped to abscond the accused be investigated.

The MPs demanded action against those who directly or indirectly helped to abscond the accused in the LC scandal. The government was publicly criticized for allowing Prakash Tibadewala of Royal Green International and Anand Kumar Agarwal of Brighter Industries Pvt. Ltd., who were accused of involvement in the scandal, to escape even after being arrested.

According to the report, both of them were seen to have committed the scam in collaboration with employees of the National Commercial Bank. It seemed that 22.634 crores had to be recovered from Tibadewala by the middle of Baisakh 2052. Agrawal and various firms and individuals, including those who were bailed out, were expected to recover Rs 12.223 million from the advance and credit account by 2052 Jestha 23. Similarly, Tibedewala's bail in Nepal Bangladesh Bank was expected to be Rs 26.83 million.

After Agrawal and Tibedewala, who were considered the main accused, were arrested and absconded, the question arose as to whether the government itself was trying to cover up the scandal. The report mentioned that only 35 businessmen and industrialists from the former Eastern Development Region were involved in the scam. However, Eastern Region Deputy Inspector General of Police Rameshwor Kharel had said that there had been no instructions to arrest the accused involved in the scam. The police had stated that many businessmen and industrialists had gone into hiding and some had fled. The MPs had pressured the government, saying that it had neglected to arrest the accused.

The MPs who put pressure by issuing this statement were Deep Kumar Upadhyay, Badrinarayan Basnet, Dhruv Prasad Sharma, Birodh Khatiwada, Krishnagopal Shrestha, and Hridayesh Tripathi. Tripathi was the chairman of the Accounts Committee and other MPs were members. In the statement, the MPs accused the ‘grind designs’ behind the scenes of running away instead of taking action against the guilty.

According to the report, the documents issued by the commercial banks where the LC was opened and the documents required by the customs office to certify that the goods were imported were forged and submitted to the bank and customs office by the owner of the firm and the person who gave the youth. The report mentioned that action should be taken against the employees of various banks. The commission’s report mentioned that 92 firms were involved in the act of embezzling foreign currency. In which Himalayan Bank 3, Bangladesh Bank 16, Nepal Bank 1, Nepal Arab Bank 6, SBI Bank 12, Indoswegs Bank 6, Bhotahiti Branch 19, Head Office Bishal Bazaar 15 and Baneshwor Branch 15 of the commercial banks helped in the embezzlement.

Based on the report made public by the Ministry of Finance, the Kantipur Daily published a list of the accused involved in the scam, their firms, banks and bank employees, and the amount of money embezzled. But when the government seemed indifferent to the action, the members of the Public Accounts Committee including Tripathi issued a statement trying to protect the accused.