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Binod Chaudhary under scrutiny: Unraveling the controversial acquisition of Bansbari government land


01 February 2024  

Time taken to read : 4 Minute


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KATHMANDU: Industrialist and lawmaker Binod Chaudhary’s younger brother, Arun Chaudhary, also the Chairman of CG Holdings, was arrested on charges of unlawfully seizing 10 ropani of land within the premises of the Bansbari Leather Shoe Industry in Kathmandu.

The Central Investigation Bureau (CIB) of Nepal Police executed the arrest at Chaudhary’s Lazimpat residence on Thursday.

It should be noted that the Commission for the Investigation of Abuse of Authority (CIAA) had earlier initiated a probe into the alleged occupation of the government land by Chaudhary Group, formerly belonging to the Bansbari Leather and Shoe Factory.

It has been alleged that industrialist and lawmaker Binod Chaudhary and his younger brother Arun purportedly converted 10 ropani of government land in Bansbari into private property.

CIAA sources said that a complaint was filed with the Commission based on the published news, prompting the commencement of an investigation.

“We have initiated the investigation,” the source said.

In 2043 BS, the government allocated 10 ropani of land from the then Bansbari Leather and Shoe Factory to Champion Footwear Limited, owned by Chaudhary Group, citing financial losses incurred by the factory.

However, the land was not sold, and instead, 25 percent share ownership was granted to Bansbari Leather and Shoe Factory.

Documents reveal that the Champion Footwear, designated to manufacture shoes on the government land, only operated for three years.

Subsequently, Chaudhary Group acquired 25 percent shares in the name of Bansbari Leather and Shoe Factory, asserting sole ownership of the land.

They transformed Champion Footwear Limited into a private company named ‘Champion Footwear Pvt Ltd’ at the Registrar’s Office.

Chaudhary Group, having sole ownership of the 10 ropani land, rebranded it as ‘CG Chandbagh Residency Pvt. Ltd.’

The land is currently hosting Chandbagh School, an investment of Chaudhary Group.

The CIAA earlier sent a letter to the Ministry of Finance, requesting detailed information on the matter as the investigation progresses.

Finance Ministry sources stated that they were actively studying the issue following the CIAA’s instructions, acknowledging its historical significance.

The Finance Ministry stated, “This issue is important. As per the instructions of the Commission, we have initiated the study.”

AIG Kiran Bajracharya, head of the CIB, said that Ajit Narayan Thapa, the former Board Chairman of Bansbari Leather Footwear Industry, was also taken into custody from his residence in Battisputali, following Chaudhary’s arrest.

The CIB had earlier issued an arrest warrant for Arun Chaudhary following a court order.

In 2043 BS, Binod Chaudhary attempted to secure government land under his name.

On August 26, 1986, he purportedly acquired 10 acres through a business partnership with Ajit Narayan Singh, the owner of Bansbari Leather Shoe Factory.

The company, supposedly set to produce one million shoes annually, held 2500 shares of Bansbari Leather Shoe Factory, excluding any share for Chaudhary’s brothers.

This decision was made in accordance with the elder brother’s directive.

Chaudhary registered the footwear company on October 27 of the same year and

Despite legal ownership of Chandbagh by Binod Chaudhary, a dispute persists over the land’s rightful owner.

It has been claimed that Binod Chaudhary possesses all the documents related to the share transactions, raising questions about the Nepali Congress-controlled Pushpa Kamal Dahal government’s involvement and highlighting accusations against Binod Chaudhary for betraying familial ties for financial gain.

Publish Date : 01 February 2024 15:55 PM

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