Six people, including the then District Education Officer, who were accused of embezzling grant money received from Janata High School in Batase, Diprung Chuichumma Rural Municipality-4, have been acquitted. 

Six out of nine people, including the then Education Officer, who were filed a case in the Special Court by the Commission for the Investigation of Abuse of Authority on Ashad 10, have been acquitted. 

On Chaitra 20, a bench of Special Court Judges Sudarshan Dev Bhatta, Dilli Ratna Shrestha and Bidur Koirala acquitted the then Education Officer of the Education Office Khotang, Bal Krishna Chapagain, Ganesh Prasad Bhattarai, Accounts Officer Bhuwan Prasad Acharya, Accountant Suresh Kumar Shrestha, Chairman of the Management Committee of the school, Church Bahadur Bishwakarma, and the person who built the building, Babendra Rai, saying that bad intentions could not be proven in the construction of the school. 

Babendra Rai, who was elected as the ward chairman from UML in the 2079 local level elections, was suspended as soon as the case was filed.  The then principal Hembar Basnet, the then sub-engineer of the Education Office Khotang, Shivaraj Rai, and the then chairman of the school management committee, Dilip Kumar Rai, have been found guilty.

A total of 2.4 million rupees was released under the School Sector Improvement Program received from the then District Education Office Khotang for the construction of the building, with an estimated cost of 3.2 million 10 thousand 864 rupees. In the fiscal year 2070/71 and 1.4 million rupees in the fiscal year 2071/72. An agreement was signed on February 12, 2070 to provide a grant for this. However, after the work up to the DPC of the RCC frame and the foundation of the mud was completed, a maximum of 20 percent of the total grant amount and the final installment amount after the work was completed, and a charge sheet was filed in the special court alleging that the Education Office had released 2.4 million rupees to the school without completing the work up to the DPC, contrary to the terms of the agreement.

Similarly, the commission had registered a charge sheet alleging that the Rs 650,000 received by the school from the office for library management and book purchase in the fiscal year 2074/75 was used in the under-construction building with malicious intent. Out of this, the technical team of Diprung Chuichumma Rural Municipality had mentioned that work worth Rs 1,625,946 was done in the construction of the four-room concrete building constructed in the school, the construction of the building was not as per the drawing and design, there was no PCC on the ground floor, the wall was separated from the pillar, there was no foundation beam, the thickness of the slab was only 7 centimeters instead of 10 centimeters, the beam was cracked, there was no possibility of constructing additional structures in the building, and the technical team's report mentioned that accidents could occur under any circumstances while keeping students in the school building.