The Lumbini Development Trust has canceled all the contracts made with the Promised Land Pvt Ltd in relation to the controversial construction project in the Ramagram area.

The executive committee meeting held on Tuesday under the chairmanship of the fund’s chair and Minister of Culture, Tourism and Civil Aviation, Sudan Kirati, decided to cancel all the works including the agreements made with the company.

The Lumbini Development Trust had inked a deal with he Promised Land Pvt Ltd, a private company owned by Prime Minister Pushpa Kamal Dahal’s landlord Sharada Prasad Adhikari’s son Nikesh Adhikari for the excavation and construction of stupa within Gautam Buddha’s ossuary mausoleum in Nawalparasi’s Ramagrama area.

It was revealed that the trust Vice-chair Lharkyal Lama had initiated the Rs 7bn project despite objections from various authorities. Concerns over transparency were raised after it was revealed that the project proceeded without due procedures.

The contract was awarded without a competitive bidding process as per the procurement laws.

Earlier, the Public Accounts Committee (PAC) under the House of Representatives (HoR) had directed the authorities concerned to repeal the agreement to acquire a piece of land in Ramagrama area in Lumbini and lease it to a private company for 99 years.

The committee, in its meeting on Sunday, had looked out for financial resources for the research, development and conservation related to the Ramgram area and directed the government to scrap the deal between the Lumbini Development Trust and the Promised Land Pvt Ltd.

The committee also decided to direct the government to scrap the agreement related to the Ramgram area and inked by the Lumbini Development Trust effective from Sunday.

The committee instructed the government to take forward further investigations on this issue and ensure that this kind of act does not get repeated in other places.