The Abuse of Authority Investigation Commission has approached the Supreme Court against the decision of the special court in the case of embezzlement of government land at Lalita Niwas located in Baluwatar. According to the decision of the special court, the authority overturned the decision and appealed to the Supreme Court with the demand for punishment as per the demand.

In February 2080, the special court found 131 people guilty, including former physical planning secretary Deep Bahadur Basnet and former land reform secretary Chhabiraj Pant, and ruled that the embezzled land would be retained in the name of the government. 5 members of the then Bhogadhikari Rana family were also convicted.

special acquitted the then Deputy Prime Minister and Physical Planning Minister Vijay Kumar Gachchdar, the then Land Reforms Minister Chandradev Joshi and the then Land Reforms Secretary Dineshhari Adhikari and other high-ranking people and some employees who were made defendants by the authority. The authority said that the decision of the special acquittal was flawed and the precedents of the court were ignored and the verdict should be overturned and the punishment should be as per the demand.

On January 22, 2076, the Authority filed a case against 110 people including Gachchdar, ex-minister, ex-secretary, land mafia, businessmen and employees of land administration, and 65 people as defendants for the purpose of land confiscation. 4 years after that, on February 3, 2080, the special court dismissed the case and found 131 people guilty and decided that the land of the Lalita residence premises, which was looted, will be in the name of the government. The rest of the defendants were acquitted by special counsel. 

Under the guise of a policy decision, the then 2 ministers Gachchdar and Joshi were acquitted. Employees, some businessmen, middlemen who were made defendants were acquitted. Many of those found guilty were sentenced to only partial punishment. In particular, the authority said that the defendant was acquitted and only partially guilty, ignoring the facts, evidence and established precedents from the court, and had to appeal. Authority spokesperson Narahari Ghimire said that the appeal was made to the Supreme Court on Tuesday as he was not satisfied with the decision made by the special court. 

About 284 ropani land of Lalita residence complex was acquired by the government in the year 2021 after paying compensation according to the law, but after about 30 years, it was returned to the name of the individual in a planned manner. After 30 years of expropriated land since 2050, the way was cleared to be retained in the name of the government by last year's special decision.

In the period from 2049 to 2069, the Abuse of Authority Investigation Commission had filed a case for misappropriation of more than 136 ropani of land of Lalita Niwas premises by making illegal decisions from the Guthi Institute, Malpot, Napi, Land Reforms Department and the Ministry. The bench of Special Judges Khushi Prasad Tharu, Ram Bahadur Thapa and Ritendra Thapa found former land reform secretary Pant and former physical planning secretary Basnyat and Lalita Niwas' then occupants Suniti Rana, Shailaja Rana, Hemanshamsher, Hatkashamsher and Rukmshamsher guilty and sentenced them to fine and imprisonment as per the law.

Bhatbhateni supermarket owner Meen Bahadur Gurung and land mafia accused Sobhakant Dhakal and Ram Kumar Subedi were found guilty by the court as the main conspirators in the land embezzlement case. Some high-profile people, including 3 then ministers and 1 secretary, who approved the file from the Ministry related to land embezzlement and submitted it to the Council of Ministers, were acquitted.