CG Holdings Chairman Arun Chaudhary nabbed

A team from the Central Investigation Bureau (CIB) of Nepal Police has arrested Arun Chaudhary, chairman and managing director of CG Holdings. He is accused of illegally appropriating the land belonging to Bansbari Leather and Shoe Factory. 

Arun, who is the brother of billionaire MP Binod Chaudhary, was apprehended from Lazimpat, Kathmandu, on Thursday.

According to the CIB, Arun will be investigated for his alleged involvement in the illegal transfer of 10 ropanis of land owned by Bansbari Leather and Shoe Factory and turning it into the property of CG Residency Pvt Ltd. 

The CIB also arrested Ajit Narayan Singh Thapa, the then-chairman of the Bansbari-based factory, and Sanjay Thakur, chairman of Chandbagh School, in connection with the case. 

The Bansbari Leather and Shoe Factory was established in the 1960s with the support of the Chinese government.

The disputed 10 ropanis of land were sold by the Bansbari Leather and Shoe Factory to Champion Footwear. Later in 1986, six acres of land were sold to Champion Footwear for Rs 250,000 per ropani, a far cheaper rate than the government valuation at the time. An additional four acres of land were given to get 2,500 shares of the industry.

At that time, along with Arun, Binod Chaudhary, Basant Chaudhary and others were the shareholders of Champion Footwear, which has long ceased to exist.

These days, the former shoe company operates as CG Chandbagh Residency Pvt Ltd, and Chaudhary Group Foundation has been running Chandbagh School here. Arun and his wife Sheela are its shareholders.

The land case was under investigation for the last three months. A three member team headed by Superintendent of Police Hobindra Bogati is leading the investigation. The team had gathered evidence from the Department of Land Management and Archive and talked to the locals before arresting the suspects.

Meanwhile, the Confederation of Nepalese Industries (CNI) has raised objections to Arun’s arrest. Organizing a press conference on Thursday, CNI representatives said that the police arrested Arun without any prior notice regarding the investigation. They said Arun, a high profile entrepreneur, was not going to leave the country for the police to apprehend him.