Kanchu!,
You said "Now, last thing I want to hear from you is that public prosecutor comes under the jurisdiction of the court, not the government-yeah yeah we all know but who can influence where that too we all know."..... you are not right, district attorney does not come under the jurisdiction of court. He/she is a representative of executive (government) in district. To be particular, their boss in kathmandu is attorney general . So, there is a lot of chance that the government/minister/prime minister have influence on what they do because after all they are government bureaucrats.

In this specific case, there could be a pressure from prime minister (government) on district attorney not to file a case against prabhu shah. or, the district attorney genuinely do not see enough evidence in the police investigation to indict prabhu shah. On the part of PM, if he wants to maintain a clean image, he should ask prabhu shah to resign or just fire him so that the investigation could go smoothly.