Kathmandu, Feb 1: The Central Investigation Bureau (CIB) of Nepal Police today arrested three persons including businessperson Arun Chaudhary in connection with the illegal conversion of the public land belonging to the Bansbari Leather and Shoe Factory as private properties.
The public land (10 ropanis) is found to have been registered in the CG Chandbag Residence Pvt. Ltd., a unit of the Chaudhary Group of which Arun is a member, said the police.
CIB also arrested Ajit Narayan Singh Thapa, former executive chief of the Factory and Sanjaya Thakur, Chairperson of the CG Chandbag Residence Pvt. Ltd. on the same charge.
Meanwhile, the Kathmandu District Court has remanded Chaudhary to four days in custody. Arun is younger brother of Nepal’s billionaire and chairperson of the Chaudhary Group Binod Chaudhary. He is also Chairperson and Managing Director of the CG Holdings.
What is the case
The Bansbari Leather and Shoe Factory was established in the mid-1960s with the financial support of the Government of China. Later in 1986, 10 ropanis of land belonging to the Factory was sold to Champion Footwear Limited, a unit of the Chaudhary Group, citing the Factory had continuously suffered a huge loss.
At that time, shareholders in the Champion Footwear were Binod Chaudhary, Arun Chaudhary, Basanta Chaudhary, Mahesh Kumar Agrawal, Lunakaran Das Chaudhary, Ganga Devi Chaudhary and the Bansbari Leather and Shoe Factory. Lately, Arun and his spouse Shila are only shareholders in the company that has later been renamed as CG Chandbag Residence Pvt. Ltd.
Now the Bansbari Leather and Shoe Factory has been closed. The CG Group Foundation is running a school in the place previously occupied by the Factory.
The case has also landed in the Commission for the Investigation of Abuse of Authority (CIAA). CIAA has been investigating the land scam.
