KATHMANDU: The Bansbari Leather and Shoe Factory’s troubles began when reports from government agencies indicated continuous financial losses, leading to a decision to sell 10 out of its 83 ropani land.
The factory, embroiled in controversy, initiated the sale to a company named ‘Champion Footwear Limited’ at a rate of 250,000 rupees per ropani during the 401st meeting of its Board of Directors in 2043 BS.
While the decision to sell the land was purportedly aimed at compensating for the factory’s losses, the transaction took an unexpected turn.
Instead of receiving cash, Bansbari Leather and Shoe Factory obtained 1,500 shares of Champion Footwear Limited, each valued at 1,000 rupees.
This unusual exchange raised eyebrows and fueled suspicions of collusion.
Of significant concern is the alleged involvement of CG Group, headed by Binod Chaudhary, a Member of Parliament from Nawalparasi West-1.
Chaudhary, associated with the Nepali Congress party, initially joined through CPN-UML and has been an influential figure in the political landscape.
The fact that CG Chandbagh Residency Pvt Ltd, under CG Group, is running a Chandbagh School on the acquired land adds another layer of complexity to the situation.
Critics argue that the government assets were seized through collusion, implicating high-profile figures from the palace to the Prime Minister, Ministers, leaders, and employees.
The lack of an objective basis for declaring Bansbari Leather and Shoe Factory in continuous loss raises questions about the legitimacy of the entire land transaction.
As the controversy unfolds, concerns mount regarding the transparency and ethicality of the deal, prompting calls for a thorough investigation into the alleged collusion and the transfer of valuable land assets.
The documents obtained from the Land Management office in Dillibazar reveal a further dimension to the controversial land transaction.
During the same meeting in 2043 BS, it was decided to sell an additional 4 ropani of land in Bansbari to Champion Footwear, bringing the total to 10 ropani.
The transaction involved the acquisition of 1000 shares by Bansbari at Rs 1000 per share, totaling 25 lakhs in value.
What adds intrigue to the situation is that the price at which Champion Footwear secured the land from Bansbari significantly undercut the government’s own valuation.
Government sources further revealed a narrative of Champion Footwear’s owners allegedly exerting influence on the then Prime Minister Shrestha and members of his cabinet, orchestrating the demise of the Bansbari Shoe Company.
An independent appraisal conducted on April 5, 1992, estimated the value of Bansbari Leather and Shoe Factory Limited’s 83 ropani land at 74 million 442 thousand rupees.
According to this assessment, the per-ropani value was 8 lakh 49 thousand rupees.
However, Champion Footwear acquired 10 ropani of the land for a mere 25 lakh rupees in shares.
The glaring disparity raises questions about how Champion Footwear managed to obtain Bansbari’s land at such a low price.
Sources suggest that political influence and access to power on the part of Champion Footwear operators played a significant role in the inexplicably favorable deal.
This prompts further inquiry into the identities of the influential individuals behind Champion Footwear.
Understanding the ‘powerful’ owners of Champion Footwear could shed light on the alleged political connections that facilitated the acquisition of Bansbari’s valuable land at a fraction of its government-assessed value.
Documents also show that the owners of Champion Footwear Limited are members of the influential Chaudhary Group family, a leading business conglomerate in the country.
The company was registered in 2043 BS, with shareholders including Binod Chaudhary, Arun Kumar Chaudhary, Luna karandas Chaudhary, Basanta Kumar Chaudhary, Mahesh Kumar Aggarwal, Bansbari Leather and Shoe Factory, and Gangadevi Chaudhary.
Binod Chaudhary, the head of the Chaudhary Group, is recognized as a Nepali billionaire and is listed on Forbes as one of the richest individuals in the country.
Notably, he has also ventured into politics, having been a member of the House of Representatives from Nawalparasi West-1 in the past parliamentary elections.
Among the shareholders, Bansbari Leather and Shoe Factory became a ‘shareholder’ by contributing its land to Champion Footwear, while Mahesh Kumar Agarwal is identified as Binod Chaudhary’s nephew and an insider of the Chaudhary Group.
The remaining shareholders are family members associated with the Chaudhary Group.
Sources claimed that the Chaudhary Group secured Bansbari’s land at a meager cost due to its close ties with the political leadership of the then Royal Palace and Panchayat regime.
A report was intentionally prepared to portray Bansbari as continuously incurring losses, serving as a plan to transfer the land to the Chaudhary Group.
The decision to sell 10 ropani of land at an undervalued price and in the form of shares was not a strategic move to alleviate the company’s losses, but rather a calculated maneuver benefiting the Chaudhary Group, the source claimed.
During the crucial period when Bansbari Leather and Shoe Factory opted to exchange shares and sell land to Champion Footwear, Marichman Singh Shrestha held the position of Prime Minister, with Bharat Bahadur Pradhan serving as the Minister of State for Finance, and Lok Bahadur Shrestha as the Secretary of the Ministry of Finance.
The Chaudhary Group’s influence over the Bansbari Leather and Shoe Factory’s land becomes evident through the account of Navraj Sharma, a ward member of the then Kathmandu Nagar Panchayat Ward-22.
Government sources further revealed a narrative of Champion Footwear’s owners allegedly exerting influence on the then Prime Minister Shrestha and members of his cabinet, orchestrating the demise of the Bansbari Shoe Company.
Astonishingly, the sway wielded by the directors of Champion Footwear was purportedly deemed ‘higher’ than that of the Marichman government and his cabinet.
To comprehend the extent of this influence, Binod Chaudhary, the owner of Champion Footwear, provides a glimpse into his connections from the palace to the highest echelons of government.
This revelation also raised serious questions about the extent of external influence on the decision-making processes within the government, shedding light on potential improprieties and suggesting a complex web of connections that may have played a role in the controversial transaction involving Bansbari Leather and Shoe Factory’s land.
Later, Binod Chaudhary ventured into a new business endeavor, ‘Apollo Steel Industries,’ in collaboration with the then Prince Dhirendra.
In his autobiography, Chaudhary candidly acknowledges that obtaining a business license was a seamless process, attributing the smooth regulatory path to his partnership with Dhirendra.
Unconventionally, Dhirendra opted for 49 percent ownership, while Chaudhary retained 51 percent of the shares.
This strategic move, Chaudhary notes, was a departure from the customary practice where the palace retained the majority shares.
The Chaudhary Group’s influence over the Bansbari Leather and Shoe Factory’s land becomes evident through the account of Navraj Sharma, a ward member of the then Kathmandu Nagar Panchayat Ward-22.
Meanwhile, Ajit Narayan Singh Thapa, the executive head of Bansbari Leather and Shoe Factory Limited, decided to allocate land to Champion Footwear despite the ‘influential’ status of Binod Chaudhary.
However, a search for the feasibility study report supposedly submitted by Champion Footwear Limited at Bansbari Leather and Shoe Factory yielded no results.
Reports also revealed indicated that Champion Footwear Limited ceased shoe production after approximately three years.
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https://english.khabarhub.com/2024/01/338519/
Binod Chaudhary under scrutiny: Unraveling the controversial acquisition of Bansbari government land
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