Nepal's anti-graft commission cleared former Prime Minister Sher Bahadur Deuba of one corruption charge, but he will remain in detention for another accusation.
The chairman of the Royal Commission for Corruption Control, Bhakta Bahadur Koirala, said on Monday that the panel acquitted Mr. Deuba of illegally distributing state money to party supporters last October.
But the former prime minister will stay in custody until the panel decides a separate charge of embezzling millions of dollars of state money in a drinking water project.
Meanwhile Nepalese military officials say 12 police officers and soldiers were killed in a gunbattle with Maoist rebels Saturday southwest of Kathmandu. The army says the rebels also suffered heavy casualties.