taken from previous posting (for those who cant read / type Nepali)



List according to news sources (except $Kantipur$):

1. Chaudhary
2. Agrawal
3. Golyan (Shanker group)
4. Adhikari
5. Khetan
6. Golchha
7. Adukia (Krishi Premura)
8. Dugar / Dugad
9. Koirala / Rubel Chaudary
10. and more

 

Includes Business Organizations, also known as the Conglomerate or Private Corporations of Nepal

Company Logo, Name, and a link to website.		Business Activities and Interests	Name and Email for CEO - Chief Executive Officer	Official Contact Detail with mailing address, phone number and email
	Chaudhary Group Features a profile and service highlights and contact details.	Manufacturing, Trade, Service and Finance	Binod K. Chaudhary	PO Box 1017, Kathmandu 977-1-5525039 send email
	Golchha Organization Profile, History of the organization, online contact form	Trading,  Manufacturing and  Agriculture	Sanjay Golchha	977-1-4250001 send email
	Jyoti Group Features a profile, highlights on business activities of the subsidiary companies along with contact details	Trade, Service, Manufacturing and Agriculture.		Jyoti Bhawan, Kantipath Kathmandu 977-1-4225230 send email
	Khetan Group presents a profile and  information on activities of the group.	Agriculture, trading, manufacturing, banking and real estate		PO Box 6156 Kathmandu 977-1-4446400 send email
	Mercantile Group Presents a profile of subsidiary companies with contact details and online inquiry form.	Information Technology, Communication, Entertainment, Advertisement, Publications and Finance	Sajiv Rajbhandari Send	PO Box876, Durbar Marg, Kathmandu, Nepal 977-1-4240920 Send
	Sarada Group contains a profile and service highlights.	Trading and Manufacturing of steel, food products		PO Box 133 Bhrikuti Chowk, Biratnagar, Nepal 977-021-524075 send email
	Sherpa Group Presents a profile, contact details and a link to subsidiary company's website.	Hotels, Travel, Arts and Crafts		PO Box 2616, Chabahil, Kathmandu, Nepal 977-1-478484 send email
	Vaidya's Organization Presents a history of the group, and contact details for subsidiary companies.	Road Construction, Agriculture, Tea Manufacturing, Auto Trading and Service	Suraj Vaidya send email	Tinkune Kathmandu PO Box 233 977-1-478301 send email

KATHMANDU, April 3: Finance Secretary Rameshore Khanal, who is on leave after tendering his resignation, on Sunday said VAT evaders must not be spared.

Speaking to journalists at an interaction at Reporters´ Club, he said that the government must not give tax evaders any exemption by amending the existing laws. “VAT evasion is a financial crime and the authorities must not commit the mistake of sparing them by amending the laws,” Khanal said.

sunil Reply: April 5th, 2011 at 1:23 pm

Like or Dislike: 0  0

[जवाफ फर्काउनुहोस्]

Chaudhary Group of Nepal involved in VAT Scam’

 

Telegraph Nepal

Looters are not only politicians. There are some so-called Big Business Houses that are too hell bent on making this country totally bankrupt. At least this much has come to the fore very freshly.

The Rajdhani Daily, April 4, 2011, claims that Chaudhary Group led none less than by United Marxist Leninists Constituent Assembly and renowned businessman Mr. Binod Kumar Chaudhary (53) and SARDA group founded by Mr. Shivratan Sarda were among the top fake VAT (Value Added Tax) Bill racketeers.

Shocking isn’t it!

‘While Chaudhary Group evaded Tax worth 45 crore rupees and SARDA group presenting fake VAT bills did not pay 70 Crore rupees to the government’.

Hmmm…Hmmm…Hmmm

There are some 28 Business firms and some individuals, whose involvement have been proven to date for having evaded the government tax, a government investigation report has it.

The government had formed an investigation committee coordinated by Deputy Director of Inland Revenue Department Mr. Laxman Aryal and other members as Kul Prasad Chudal, Suryanath Prakash Adhikari, Dirgharaj Mainali, Govinda Prasad Subedi and Psadananada Gurung.

Founded by Lunkarandas Chaudhary, the Chaudhary Group of Industries is being run by Basanta Chaudhary, Arun Chaudhary and Nirvan Chaudhary under the leadership of Mr. Binod Chaudhary.

The CG company imports vehicles, is involved in production of fast foods and snacks, Lube Oil and have also invested in Financial Institutions. The Group had recently joined hands with Thailand based InVision Hospitality with a plan to open 30 hotels across Asia by 2013.

Similarly, SARDA group is involved in production of Wires, Cables, Pashmina, fast foods and snacks. The group is managed by Sandip Sarda and Pradip Sarda led by founding Chairman Shivratan Sarda.

The Rajdhani daily newspaper claims that it is in possession of a 33 page long document confirming that the two business houses are involved in fake VAT bill scam.

According to the investigation report, some forty five firms involved in import and reselling of vehicles, construction businesses, construction industries, electronic goods manufacturers, sales agents of multinational companies, local importers have been found to be involved in presenting fake VAT bills.

In the meantime, the Public Accounts Committee of the Parliament has ordered the government to present a report providing entire details of VAT scam to the committee within four working days. The committee has already summoned Finance Minister Bharat Mohan Adhikari, Revenue Secretary Mr. Krishna Hari Baskota, Director at Revenue Department Rajan Khanal, Director of Tax Investigation Bureau Mr. Shanta Bahadur Shrestha.

Rumors have it that the finance secretary Rameshwar Khanal is hitting the media headlines because he wanted to penalize the VAT defaulters.

However, when he was denied to carry the task, he tendered his resignation under “excessive pressure” both from his own office colleagues and the minister as well.

The Nepali Congress, the main opposition party, has already made the entire episode a political issue.

This has meaning.

To recall, talking to an English language weekly after being selected to represent Business community in the constituent assembly, Mr. Binod Chaudhary had claimed that his main objective was to keep economic agendas at the center of constitution drafting.Alll that glitters is not Gold!

(For other details read Rajdhani Daily, April 4, 2011)

Telegraph Nepal

Prime Minister Jhal Nath Khanal has assured that his government is totally committed to bring to book those business houses that were found to have been engaged in evading tax through presentation of fake VAT (Value Added Tax) bills.

PM Khanal made the commitment speaking at a parliamentary session, April 4, 2011.

“Through investigation it has come to our knowledge that there has been the dangerous trend of presenting fake documents and bills to evade government taxes”, said the Prime Minister and added, “The government is totally committed to bring to book those involved in such mal practices”.

But will he dare?

While referring to the resignation tendered by Finance Secretary Mr. Rameshwor Khanal the Prime Minister said, “The government will not lose its head just because a government functionary has resigned”.

Interested media quarters and some of the political parties have been linking resignation of Finance Secretary with the issue of the tax evasion.

Yet some others claim Foreign Secretary Khanal- projected as one of the sacrosanct government officials, by tendering his resignation has instead escaped from his duties.

In the meantime, reports have it referring to investigation carried out by a government agency that the trend of Tax evasion was much more rampant in the previous two fiscal years as compared to the ongoing one.

“What has come to the fore is just the beginning, we have found out that big business houses were involved in such malpractices from long time back”, the investigation report has it.

Similarly, Finance Minister Bharat Mohan Adhikari speaking at the parliament said that if authorized by the CA Speaker he could furnish entire details to the parliament including fake VAT bills presented by big business houses to evade government taxes.

“If allowed by the speaker, I will bring the details of those business houses including the fake VAT bills right here in the parliament”, said the finance minister.

The Rajdhani Daily, April 4, 2011, had claimed that it is in possession of the 33 pages long investigation report which claims that two renowned business houses, Chaudhary Group and Sarda group were among top fake VAT Bill racketeers in Nepal.

Whether the business houses involved in VAT scams will also disclose under table financing of political parties of Nepal? They should! That would be a fair play.

देश कसरी चल्छ , ठगी जता ततै गरीब जनता तिरेको तिरै ।
चोर्न ठग्न लाज हुनु पर्ने हैन ? हिसा पाए जन्म दिने आमालाई नै लाल्तेन बजार पुर्याउने भए । 

भ्याट छलि काण्डमा माओवादी किन चुप ?

२४ चैत, काठमाडौं । रायमाझी आयोगमात्र हैन, २०४६ सालपछि गठन भएको ‘मल्लिक आयोग’का दोषीलाई समेत आफैं कारवाही गर्ने भन्दै कुर्लने तथा लोकपि्रय राजनीतिका लागि अनेक बहानालाई उपयोग गर्ने माओवादी, नक्कली भ्याटबिल प्रकरणमा भने रहस्यमय ढंगले मौन छ ।

मूलधारका मिडियाले लुकाउन खोजेपनि ठूला ब्यापारिक घरानाले देशको अरबौं राजश्व लुटेका समाचार अनलाइनसहितका बैकल्पिक सञ्चारमाध्यमबाट सार्बजनिक भइरहेका छन् । त्यसरी ठगी गर्नेहरुको नाम र रकमसमेत सार्बजनिक भइसकेको छ । तर, जनताका पक्षमा राजनीति गर्ने भनिएको माओवादी भने यसबारेमा मौन बसिरहेको छ ।

राजनीतिक नेतृत्वसँगको मिलेमतोमा ब्यापारीबाट भइरहेको नेपालको इतिहासको सम्भवत सवैभन्दा ठूलो घोटालाकाण्डमा मुलुककै ठूलो दल मौन बस्नुलाई धेरैले उसको संलग्नता वा मौन समर्थनका रुपमा बुझेका छन् ।

सदनमा बोल्दै प्रमुख प्रतिपक्षी दलका नेता रामशरण महतले केही दिनअघि भनेका थिए-’यसमा ठूलै मूल्यको सौदाबाजी भएको हुनसक्छ ।’ उनले मात्र हैन अनलाइनखबरमा समाचार प्रकाशित भएपछि प्रतिक्रिया दिने पाठकले पनि यो घटनामा माओवादी संलग्नता रहेको आशंका गर्दै प्रतिक्रिया पठाएका छन् । यो काण्ड मिलाउन ठूला घरानाले करिव ४० करोड रुपैयाँ संकलन गरेर सबै राजनीतिक दलका मुखमा पुर्‍याइसकेको चर्चा पनि चलिरहेको छ । के त्यो संकलित रकम माओवादी हेडक्वाटर भनिने प्रचण्डनिवास नयाँबजारसम्म पनि पुगेको हो ?

प्रधानमन्त्री हुँदा प्रचण्डका स्वकीय सचिव रहेका तथा हाल माओवादीका कार्यालय सचिवको भूमिकाका रहेका शक्ति बस्नेतले भने त्यो आरोपलाई अस्वीकार गरे ।

‘यो सरकारसँग जोडिएको कुरा हो, सरकारले जवाफ दिइरहेको छ हामीले बोल्नु आबश्यक छैन’-बस्नेतले अनलाइनखबरसँग भने । मोटो रकम पाएर माओवादी चुप बसेको भन्ने आरोप लागिरहेको सन्र्दभमा बस्नेतको भनाई थियो-’कसले कहाँ के आरोप लगाउँछ त्यसको जवाफ दिंदै हिड्न पनि त सकिन्न ।’

देशको अरबौं राजश्व लुटिंदासमेत त्यसबारे माओवादीले औपचारिक धारणा नदिनु र उनीहरुलाई कारबाही गर्नुपर्छसम्म नभन्नुले उसको नियतमाथि शंका गर्न थालिएको छ । तर बस्नेतले भने-’अहिले नै हामी बोल्नु भनेको चोरको खुट्टा काट भन्दा थुत्नुजस्तो हो ।’

माओवादीनिकट एक केन्द्रीय नेताले भने माओवादीलाई पार्टी चलाउन ब्यापारीबाट पैसा उठाउन नपर्ने र माओवादीसँग प्रसस्त आर्थिक स्रोत रहेको दावी गरे ।

नक्कली भ्याटविल प्रकरणमा मुख्य राजनीतिक दलका ब्यापारी सभासदहरु नै प्रत्यक्ष संलग्न रहेका कारण पनि दलहरु यस बिषयमा मौन बसेको बताइएको छ । एमालेका सभासदहरु बिनोद चौधरी र रघुवीर महासेठ, नेपाली कांग्रेसका दिवाकर गोल्छा तथा माओवादीका पद्म ज्योतीसम्म नक्कली भ्याटबिलमा करोडौं रुपैयाँ ठगीमा संलग्न रहेको पाइएको छ ।

यता, ब्यापारीलाई कम जरिवाना तिराएरै वा माफी दिएरै यो काण्डलाई सामसुम पार्न खोजिरहेका अर्थमन्त्री भरतमोहन अधिकारीले भने नयाँ बजेटसंग कानुन संशोधनको प्रस्ताव ल्याएर कम जरिवाना गराउने र भ्याट छलिमा संलग्नहरुको नामावली कुनैपनि हालतमा सार्बजनिक नगर्ने योजनामा रहेको बताइएको छ ।

• Malla wrote on 7 April, 2011, 15:33

  राम्रो समाचार ।
  हामीले बुझ्न पर्ने कुरा के हो भने, कुनै पनि राजनितिक दलले यी भ्याटमाराहरुलाई कारवाही गर्ने छैनन् किनभने यी भ्याटमाराहरुबाट प्राप्त हुने चन्दा नै सबै राजनितिक दलहरुको प्रमुख आर्थिक स्रोत मध्येको एक हो । र जहाँसम्म मलाई लाग्छ नेपालमा अहिलेसम्म कुनै पनि राजनितिक दल छैन कि जसले आफ्नो आर्थिक स्रोतको विरुद्ध कदम चाल्न सक्छ ।
  यसकारण यी लाचार राजनितिक दलहरुले केही गर्लान कि भनेर हेर्नुको साटो हामी सबै मिली कदम चाल्नु नै सबैभन्दा बुद्धिमानी हुनेछ भन्ने लाग्छ । यसको लागि हामी मूल रुपमा सरकार तथा राजनितिक दलहरुलाई दवाव श्रृजना गर्ने किसिमले सडकमा उत्रन सक्दछौं । बैशाख १ गते हुने भनिएको तातो न छाडो “शान्ति र्‍याली”को साटो भ्रष्टाचारी, भ्याटमाराहरुको विरुद्ध आन्दोलन गर्न सक्दछौं । (यस शान्ति र्‍यालीको आयोजकहरु मध्ये कतिपय यी भ्याटमाराहरु पनि होलान्)
  अर्को विरोधको तरिका हो यी भ्याटमारा तथा भ्रष्टहरुलाई सामाजिक बहिस्कार गर्ने ।
  अब भन्नहोस् “शान्ति र्‍यली”मा भाग लिने कि यिनीहरुको बिरुद्ध लड्ने ? गर्ने होइन त बहिस्कार ?

WONDERING HOW THEY BECOME SO RICH WITH WAI WAI

JNepali multinational: Chaudhary Group spreads its wings beyond Nepal

"We now have to let economic agenda take centre stage in Nepal," says Binod Chaudhary, "we are done with politics."

The 53-year-old head of the Chaudhary Group (CG) says this is the reason he agreed to become a UML-nominated member of the Constituent Assembly along with other businessmen.

"This is why my colleagues and I joined the assembly. We now want to make sure that the economy takes centre stage," Chaudhary said in an interview after being selected as the Nepali Times Company of the Month for July.

Binod Chaudhary has a lot to be proud of: a third-generation Nepali Marwari business family that has become Nepal's first multinational with over $500 million in assets and revenues that Forbes Asia recently called 'among Nepal's richest non-royals'.

Chaudhary's Cinnovation group with its hotel division has invested in tourism, manufacturing and trade, owning hotels in New York, Malaysia, Maldives and Sri Lanka. The group is still in full expansion mode with partners to set up luxury hotels in Singapore, Thailand and Bali.

But Chaudhary still sees Nepal as his base. "You have to have a certain mindset to be a global player," he says, "but our roots are here and I get the greatest satisfaction from being able to invest and create new jobs in Nepal."

Indeed, ever since taking over from his father Lunkaran Das Chaudhary and starting a department store in New Road in the 1970s, CG is now the biggest business player in Nepal literally 'Touching Life Everyday', as the company's motto has it. CG's WaiWai instant noodle is a recognised and established brand not just in Nepal but in 20 different countries. CG's trading wing sells LG electronics and Marutis.

"Entrepreneurship only really took off after the Panchayat, but even through the difficult period after 1990 there has been dramatic growth in business in Nepal," says Chaudhary, "in fact, if there were right policies and proper governance, Nepal's economy could really take off."

Chaudhary says Nepal should now concentrate on core areas like manufacturing, hydropower, financial services and tourism and would like to work to make investment possible in these sectors as a member of the CA.

In fact, CG itself is investing in a 2 million ton annual capacity cement plant. Nepal consumes 2.6 million tons of cement annually, and this is expected to grow at 15 per cent a year.

Chaudhary also sees no other alternative but to invest boldly in hydropower in a big way to reduce Nepal's growing balance of payments gap with India. His group alone is involved in studying several projects in the
5 MW-600 MW range totaling 1,700 MW. Investment in cement, tourism and hydropower alone could create hundreds of thousands of new jobs.

"If there is one job that is really easy in the world, it is to raise capital through mutual funds, venture capital. All you need is a track record and a good idea," he says. Chaudhary is confident that with proper support there is no reason why up to 10 other Nepali businesses can also expand their overseas investments.

Chaudhary is not as pessimistic as others about a new government led by the Maoists. He says the regime change is an opportunity for Nepal to be more focussed on private sector-led growth, provide an investment-friendly climate for domestic and foreign investors and allow industries to spread their wings in an unfettered way.

Chaudhary has one pet-idea that he says could immediately increase national income: train 50,000 workers waiting to go abroad in English and basic skills to double their monthly income. This, he says, will have an immediate impact on remittances.

Looks like chadauray group, khetan group , all marwaris started from textile store from new road, within span of few decades , especially after democracy, they become exceptionally rich. Even forbes has a talk abt them.

Himalayan Vistas
Naazneen Karmali 06.12.08, 5:00 PM ET
Forbes Magazine dated June 30, 2008

Binod Chaudhary

Binod Chaudhary took business to the limits in old Nepal. He argues its new Maoist-led regime should mean a wider berth.

At the foothills of the Himalayas lies the world's newest republic and, potentially, a tourists' paradise. But a decade-long civil war by Maoist rebels, a troubled monarchy and ineffective governments have stunted Nepal's economic growth to the point of stagnation. The aftermath is visible to any visitor to Kathmandu, the capital. Cars and motorbikes clog either side of the road to the airport, waiting to get their limited quota of gasoline from neighborhood stations. The wait can mean a day off from work just to tank up. Even as fuel got dearer--Nepal imports all its requirements from India--the outgoing Nepali Congress-led government dithered to the last in raising prices. Kathmandu's residents have learned to live with much more deprivation than fuel rationing--four- to eight-hour power outages daily and an acute shortage of drinking water.

Now the Maoists have ousted Nepal's unpopular king and are closing in on power through a coalition after grabbing a 30% popular-vote plurality in April elections. The new Constituent Assembly has already sent the creaky 240-year-old monarchy packing.

The region's taking a deep breath. Will this victorious faction of the Communist Party of Nepal really evolve from an insurgency that marked the royals' final violent years toward a stable democracy?

The president of a leading conglomerate in the country, Binod Chaudhary, is bullish. "We're going to see sweeping changes. All political parties, including the Maoists, are committed to reshaping Nepal's economic destiny," he avers. The 53-year-old head of the Chaudhary Group is himself a newly designated parliamentarian, one of a dozen businessmen in the 575-member Assembly. He was nominated under the banner of the Communist Party of Nepal-Unified Marxist Leninists (CPN-UML), a party unexpectedly outdone by the Maoists.

An avowed capitalist, Chaudhary sees no contradiction in his recently forged affiliation. He argues the CPN-UML is pro business with more socialist than communist leanings. The platform in parliament lets him advance economic goals. "We will raise our voice for reforms," he insists, and foreign investors will flock to political stability.

Nepal's biggest baits: energy and tourism. The country's hydropower potential, estimated at 84,000 megawatts, has barely been tapped (giant India, by contrast, has a potential of 150,000mw). Home to the breathtaking Himalayas in the North, including Mount Everest, the world's highest, Nepal is a trekker's haven in normal times. Yet, sandwiched between India and China, two of the world's fastest-growing economies, this nation is South Asia's poorest. Its economy, smaller than that of tiny Sri Lanka, has been crawling ahead at 2.5%, barely keeping pace with population growth.

Some don't share Chaudhary's optimism. Sujit Mundul, chief executive of Standard Chartered (other-otc: SCBEF.PK - news - people ) Bank Nepal, argues that before committing capital, foreign investors will expect greater flexibility in Nepal's labor laws, which today don't allow workers to be hired and fired at will. Says political commentator Kanak Dixit, publisher and editor of Himal, a monthly on South Asian affairs, "Our economy is like a spring waiting to be released. But those who are pinning their hopes on the Maoists are being idealistic as they may or may not deliver."

One hopeful sign: Maoist Deputy Leader Baburam Bhattarai assured members of the Federation of Nepalese Chambers of Commerce & Industry that the party is pro-economic-development.

If so, the $270 million (revenues) Chaudhary Group would stand to be a notable beneficiary. The group's corporate slogan, "Touching life everyday," is clichéd but true. Group firm CG Foods' Wai Wai, a popular brand of instant brown noodles, was ranked as Nepal's top consumer brand by research firm acnielsen last year.

The group has a thriving trading arm that distributes a slew of foreign brands, including lg electronics (which the group also manufactures locally) and Maruti Suzuki (other-otc: SZKMF.PK - news - people ) cars. All of Kathmandu's taxis are compact, fuel-efficient Maruti cars imported from India. (Fuel shortage or no, Chaudhary prefers to be chauffeur-driven in a gas-guzzling Suzuki SUV to his seven-story group headquarters on the site of a former electronics factory). Other interests include a brewery, a 137-acre industrial park with a 9-hole golf course (named after Chaudhary's late mother), packaging, cigarettes and steel.

Binod's grandfather Bhuramal Chaudhary, a textile trader born into Rajasthan's Marwari community in 1870, seized on doing business in the Himalayan kingdom after moving there as a boy. Opening his first textile store on Kathmandu's New Road, he supplied his wares to the royal family. His only son, Lunkaran Das Chaudhary--Binod's father, who retains the title of chairman and is still semiactive at 86--converted the modest outlet into Arun Emporium, Nepal's first department store, named after his youngest son (Binod's brother, now 45). Alongside, he expanded into manufacturing textiles, hosiery, utensils and biscuits.

The opportunistic philosophy has carried through into a fourth generation that now includes Binod's three sons, at work in the group. "If nobody has done it before, it doesn't mean that it can't be done!" their father grins, tucking into a lunch bowl of Wai Wai noodles.

Chaudhary Group is only part of the family empire. It's an open secret that it has a stake in Nabil Bank, a domestic private. This is held indirectly through NB (International), an offshore entity in Ireland. The 50% stake was acquired from Emirates Bank, which sold it first to the National Bank of Bangladesh, which in turn did a deal with the Irish firm. Earlier, a court had stalled a direct Chaudhary purchase. The Nabil holding forms part of Cinnovation Group, Chaudhary's overseas arm, headquartered in Singapore. Together the two business entities probably constitute a valuation exceeding $500 million, making the family among Nepal's richest nonroyals.

Cinnovation has interests in hospitality, real estate, financial services and consumer goods. Cigen, its Hong Kong-registered hospitality arm, is a partner in Taj Asia, part of India's Taj hotel chain, a Tata affiliate that runs luxury resorts in the Maldives, Sri Lanka and Malaysia. In the pipeline are new resorts in Phuket and Bali and 15 business hotels in India. Additionally, Cigen has inked a deal with Alila, a boutique hotel operator in Singapore, to set up a chain of high-end wellness resorts in exotic Asian locations. It also has a stake in a Hilton Doubletree Hotel close to New York's JFK International airport. Cinnovation also is affiliated with a real estate play in Dubai.

Since Nepalis are prohibited from investing overseas by an archaic nationalistic law, Chaudhary assembled his overseas empire by tapping into a network of "friends and associates" around the world and forging what he terms "strategic partnerships." It helped that two of his sons who studied and live abroad are nonresident Nepalis, a status that allows them to hold assets outside Nepal.

Chaudhary is hopeful that in the rosier future that he envisages, such ruses may no longer be needed. Even the departing government, under reform-minded Finance Minister Ram Sharan Mahat, has contemplated more liberal legislation. "Many Nepalis are using the back door to invest overseas. This will allow them to invest through the front door," says Mahat, who has been finance minister five times but isn't likely to retain his portfolio in the new government.

At 18, young Binod was already focused abroad, set to leave for India to study accounting, when his father developed a heart ailment. The son instead plunged into the family trade. He recalls that Arun Emporium at the time had no more than 50 employees; today 4,000 people work for Chaudhary and Cinnovation. He doesn't regret not getting a college degree and takes pride in being self-taught. He says his early trips to source imports transformed his thinking. "Japan was my B-school," says Chaudhary, who learned Japanese to be able to negotiate better and order vegetarian food.

 

To support the biscuits business that was taking off, the Chaudharys got into flour milling, cooking oil and packaging. Since the mill produced more flour than the biscuit factory needed, they moved into instant noodles, a popular fast-food item in Nepal, procuring know-how from a Thai firm (hence the name Wai Wai). The noodles were an instant hit and before long were being exported to the Middle East and India, where the group has two factories.

Chaudhary says that growth and expansion was never easy, owing to Nepal's strict licensing regime (disbanded in 1990) and an attitude then that businessmen were smugglers and exploiters. "It was impossible to do any legitimate business without making the decision makers happy. I learnt how to negotiate my way," he acknowledges. While his father advised him to "be a submarine" and keep a low profile, Chaudhary insisted on a group identity and flaunting his wealth. He drove to the income tax office in a Mercedes-Benz. There've been scandals, but he has always answered the accusations.

While he still eyes creating Nepal's first multinational group by listing Cinnovation overseas, he's focusing on domestic opportunities. The group is partnering with AES to develop hydropower projects and has plans to set up Nepal's biggest cement plant. Chaudhary's oldest son, Nirvana, who lives in Nepal, is building two townships outside Kathmandu, one for homes at a $100 monthly mortgage.

Breaking from the political heat, Binod set out on a ten-day Himalayan trek in May. The high point, literally, of that grueling journey was traversing the Thorong La Pass, at almost 18,000-feet elevation. (Mount Everest peaks at 29,000.) "I'd never gone trekking before, and I thought it's time I tested my physical endurance," he enthuses. There'll be plenty of other hills to climb just ahead.

By the Numbers

Chaudhary Challenge

Nepal has been so poor that much of the population has gone elsewhere to work.

26 million Nepal's population.

$383 Nepal's per capita income.

7 million Number of Nepalis living abroad.

 

bimalesh

Now is the time to BOYCOTT all products and services from Chaudary Group. We have to take action if the law, leaders, and the country can not do anything.

TOGETHER WE CAN make them pay back all the VAT and fines owned by the country. Lets put this in our facebook status page

BOYCOTTING FOLLOWING PRODUCT UNTIL CG PAYS BACK ALL THE VAT AND FINES OWNED BY NEPAL GOVT.

CG products:
- WAI WAI, SOLTE, MAMA, GOL MOL, BINGO, PET PUJA, RINTIN, SAATHI noodles
- RIO JUICE
- KWIK, TIC TIC, KRUNCH ALOOZ, MIMI snacks
- ZOOM, KWIK chocolate
- SHREE MAHALAXMI maida products
- NIRVANA cooking oils
- PINE cigarettes
- LG electronics (CG is the dealer)
- TVS, MARUTI SUZUKI, ASHOK LEYLAND cars and bikes
- GULF lubricants and MICO BOSCH spare parts

Financial and Insurance
- WESTERN UNION Financial Services (CG group is agent for Nepal)
- UNITED INSURANCE Company (Nepal) Ltd
- e-pay ® Pvt. Ltd.

CG Companies:
- Pashupati Biscuits
- Instant Meal Pvt. Ltd.
- Gold Beverages Pvt. Ltd., Nepal Thai Foods Pvt. Ltd., Kwik Foods Pvt. Ltd.
- CG Foods ( Nepal ) Pvt. Ltd.
- Shree Mahalaxmi Maida Mills Pvt. Ltd.
- Nirvana Vanaspati Udyog (Pvt.) Ltd.
- Sungold Brewery ( Nepal ) Pvt. Ltd.
- Perfect Blends ( Nepal ) Pvt. Ltd.
- Megha Woolen Mills Pvt. Ltd.

They are the Mafias of Nepal. I was not expecting this much involvement in Fraud and crime…….
So Nepalese businessmen cannot compete with them…..these Mafias press them politically and physically…….Monopoly in business ….. law-breaking…..
Good job. Keep on hanging on this case. We want to see them behind bars….. Please don’t disappoint us…..

Rs 2.27 Billion Nepal VAT Scam, Biggest firms involved

Group	Owner	Company	Presented Fake VAT Bill (NPR)- Investigation to date
Shankar	Shankar Lal Golyan Pawan Kumar Golyan (Chairman NMB Bank)	Jagadamba Steels	80 Crores
Chaudhary	Binod Kumar Chaudhary Arun Chaudhary Basanta Chaudhary Nirvan Chaudhary	CG Impex, CG Electronics, CG Foods, Arun Intercontinental,	45 Crores
Golcha	Diwakar Golcha Shekhar Golcha	Him Electronics, Neoteric,	6 Crores (Investigation to date)
Vishal	J.P. Agrawal (Chairman NIC Bank) T.R Agrawal Nirmal Agrawal (Board Member NIC Bank) Trilok Chandra Agrawal (Chairman Bank of Asia) Anuj Agrawal (Board Member Bank of Asia)	United Distributors, investments in financial institutions, Insurance Companies, Trading Houses	10 crores
Bhatbhateni	Min Bahadur Gurung	Bhatbhateni Super Market (Maharajgunj and Bhatbhateni)	8 Crore
Barun	Rabin Jain Tajpuriya (Indian national)	Barun Beverage KFC and Pizza Hut	15 Crore
Chameliya Hydropower	Chinese Contractor		60 Crore
SARDA	Shivratan Sarda Sandip Sarda Pradip Sarda		70 Crore

CNN Producer Note Follow Up

iReport —

The biggest fiscal or ‘white’ crime in Nepal’s history is just the tip of the iceberg and exposes the massive level of corruption and greed in all sectors of Nepal. Just a few of the details that have emerged are as follows :

VAT Fraud :

A number of well known Nepalese Corporates have emerged as front runners in this Multi Billion Nrs. Scam.  While well known Groups such as Chaudhary Group, Golccha Organization, Shanker Group, Vishal Group, Bhat Bhateni Supermarket,  Chameliya Hydropower have figured in previous reports.  Other Group such as Sharda Group (Reported Fraud of Nrs. 700 million), Triveni Group (Reported to have large amounts of fake VAT Bills) etc have briefly been exposed in the press then been swiftly suppressed. 

Moreover sources share that corporate houses including Murarka Group, KL Dugar Group, TM Dugar Group, ICTC Group, Maliram Shivkumar Group, Chainwala Group, Panchakanya Group, Hama Steel etc. are also involved in various levels and forms, but have managed to keep their names out of the media.   Almost all Automobile Importing companies, including MAW (Morang Auto Works), Jyoti Group etc. are involved in various scales in this scam.

Sources share that about 400+ companies have already been found to be using fake VAT Bills, and those represent potentially 80% of the Country’s Business Houses (if one considers each Group as a whole). 

Currently the investigation has centered around Kathmandu.  However mid sized corporates / industries operating even in the other industrial towns of Biratnagar, Bigunj, Bhairwaha etc are also involved in a large scale in this issue.

Moreover, sources confirm that even Government Corporations such as NEA, NOC, NTC etc. have figured when examining records of companies involved in this VAT Scam.  It is clear that this scam reaches into all sectors of the economy.  (Details of these Groups can be found by searching on the internet).

Industrial Fraud

Many (if not most) industries in Nepal are engaged in various forms of illegal activity causing losses to the Government of Billions of Rupees annually.  Some examples are;  the Woven Sack Industries who import raw materials under duty free guarantee for export - sell part of the finished product locally – and then generate fake export documents to rob the country of valuable Import Duty and VAT;  Biscuit Manufacturers who buy most of the Raw Materials of the books, then sell product locally without paying any VAT to the Government; Cement Industries which declare lower prices for sale etc.

These are just some examples, but most industries are involved in some manner of Revue Leakage.  A few years ago, Khetan Group and Gorkha Brewery (subsidiary of Carlsberg) were in the news when their trucks of beer were caught without excise stickers, and estimated loss to the national exchequer of Billions of Rupees annually.  This was again hushed up due to a well managed effort, with a small fine being paid for appearances sake.

Banking Fraud :

The latest to erupt is the Banking Fraud which threatens to derail Nepal’s entire economy and is wiping out the deposits of those small savers who can least afford it.  Two institutions which have virtually gone Bankrupt in the last couple of months are, Gorkha Development Bank , and Nepal Share Market Finance Company, have each got large deposit bases (Approx 4-5 Billion Nrs) and have exposed a nexus of Directors who are using these institutions as their personal property, and rampantly abusing the system.

Sources inside the Cental Bank share that as many as 20 to 30 Finance Companies and Development Banks are due to collapse imminently.  The papers reported recently that the Central Bank had 8 Commercial Banks who are on the watch list.  Again sources share that these banks are Machhapuchere, Kist, Kumari, Sunrise, NBB, Global, Mega and Civil.  Some of the new banks (such as Mega Bank) were found to spend large sums of money even before opening in buying fancy vehicles and offices for their Directors.

Another facet of Banking Fraud are rogue borrowers who manipulate their relationships and assets to build a huge pyramid of borrowing.  The most recent case is of Rakesh Adukia.  An Indian Citizen with businesses in Hong Kong, Rakesh built a massive (5 Billion Nrs+) asset base in Nepal of Shares and Properties, with primarily borrowed funds.  The latest estimate is that his total borrowing is of Nrs. 3 Billion, and his assets are now worth about 1.5 Billion, leaving a large gaping hole of Nrs. 1.5 Billion.

Other large  frauds such as the fake Government Voucher scam which surfaced two years ago (estimated revenue loss over 20 Billion Nrs.) have just languished without being investigated.  Efforts to bring in the Money Laundering act are stymied by resistance, especially as there is no system of wealth declaration in Nepal making it impossible to determine which funds are tax paid, and which are simply ancestral funds handed down.  Further with many Ministers and Bureaucrats being virtual billionaires with no known sources of income, any wealth declaration initiative will never get off the ground.

 

These are just some of the examples of what sources say is corruption on a historic scale.  With no real Political Stability in place, everyone seems to be in a race to rob the country the most.  Bureaucrats are using these scams to shy away from their own effectiveness.  No one is talking of the big issues such as 18 hour power shortage in a country with certified Hydropower Potential of 100,000 MW (only 700 MW is currently being produced), or 18-21% interest rates, or no local employment opportunities leading to over 3 Million workers going overseas.  Corruption in organizations such as NOC, NEA, NAC, NTC has reached historic highs, with an estimated 40% of all spending being estimated to be paid as kick backs.  All of these corporations enjoy virtual monopolies and massive state support, but with the exception of NTC they are all on the verge of bankruptcies with huge losses on their books.

What Nepal needs now is a sense of patriotism and respect for one’s country.  Whether one is a Politician, Bureaucrat, Professional or a Businessman, a genuine nationalistic feeling is a must to rebuild Nepal.  Quick decisions on core areas such as Hydropower are important.  Sops being handed out to industries which have no core-competence in Nepal need to be stopped.  Focus should be on the core areas, as well as improving lives of the people at the bottom of the Pyramid.

However, given the past 5 decades, once more this report will be read, discussed and hotly debated, before the next political crisis or scam takes place.  Meanwhile the ultimate loser will be those 25 million Nepalese who struggle to live a basic life of dignity and purpose, and whose only care is earning enough to survive.