On 2 October 2016, Sah, who was then the owner of Worldwide Consultancy based in Putalisadak, was arrested by the Metropolitan Police Crime Division on charges of fraud.[7] Sah and his aide, Ganesh Adhikari, were accused of duping students by falsely promising guaranteed admission into the MBBS program at Kathmandu University.[8]
According to police reports, Adhikari approached an aspiring student appearing for the October 1 entrance exams and demanded Rs 200,000 from the student's mother, claiming he had strong connections with medical doctors and could secure a backdoor entry. After verifying with others that backdoor entry to the university was impossible, the mother filed a fraud complaint. Police deployed a plain-clothes team and caught Adhikari red-handed while accepting a cheque from the victim.[9] During interrogation, Adhikari revealed he was working on behalf of Sah, leading to Sah's arrest from his Teku-based consultancy on 29 September 2016 (13 Ashoj 2073 BS).[10]
Furthermore, police spokesperson SP Sahakul Bahadur Thapa stated that Sah had been faking his identity by claiming to be a medical doctor to lure victims, though police investigations confirmed he was not a registered medical professional.[9][11] Both were sent to the Kathmandu Metropolitan Police Range for further legal action.
Sah's past criminal record resurfaced and sparked widespread public criticism following his appointment as the Minister for Labour, Employment and Social Security in March 2026.[12] The appointment drew severe backlash against the Rastriya Swatantra Party (RSP) and Prime Minister Balendra Shah, as the RSP had campaigned heavily on the slogan of "Jannelai Chhanne" (choosing the capable) and promising to appoint subject-matter experts to ministerial roles. Critics and political observers questioned the transparency, criteria, and ethical standards of the government for appointing an individual with a history of educational fraud and faking medical credentials to a prominent cabinet position.[12]
When confronted by the media regarding his 2016 arrest and the fraud allegations shortly after his appointment, Sah refused to provide a clear answer or confirm whether he was acquitted. He repeatedly attempted to dodge the questions, stating, "I cannot say anything about that right now. It is nothing," before hanging up the phone.[13]
In April 2026, Sah and the Rastriya Swatantra Party (RSP) faced widespread allegations of nepotism and favoritism after his wife, Junu Shrestha, was controversially reappointed as a member of the Health Insurance Board.[14] Shrestha had originally been appointed to the board in November 2023 by former Health Minister Mohan Bahadur Basnet for a four-year term. However, her tenure was cut short and she was suspended after missing 11 consecutive board meetings, a direct violation of the Health Insurance Act.[15]
Despite her prior suspension for disciplinary reasons, incumbent Health and Population Minister Nisha Mehta reinstated Shrestha to fill a vacant board position for another four-year term. The reappointment drew significant political backlash, with critics accusing the government of reverting to patronage-driven politics. Observers noted that the appointment directly contradicted the RSP's core campaign promises of establishing a meritocracy, ensuring good governance, and ending political nepotism.[14][15] The controversy was further fueled by reports of Sah delivering a "rambling rant" during a Health Insurance Board meeting on 7 April 2026, which media outlets stated damaged the party's public image.[14]
Following public outcry on social media, Shrestha publicly denied the reports of her reappointment. She released a statement claiming she had not received an appointment letter, had no involvement in the matter, and insisted her original 2023 appointment remained valid through 2027. Despite her denials, Ministry of Health officials confirmed to the media that the decision to reappoint her had been finalized internally and was undergoing formal processing.[15]
