Please spread the word : The biggest fiscal or ‘white’ crime in Nepal’s history
Bipin Gautam
The biggest fiscal or ‘white’ crime in Nepal’s history
After resigning from the position of Finance Secretary, Rameshwor
Khanal wrote a brief note on his Facebook account – “I came across
people with greed for power and money each day for the last eight
years.” So who are those people who are only running after money and
power?
We have obtained a confidential list of large corporate houses
involved in fake Value Added Tax (VAT) bills scam for their greed of
money and then lobbying for power to clean up their mess through
political channels.
The list of those involved in the biggest fiscal or ‘white’ crime in
Nepal’s history so far includes even the earliest Nepalese
conglomerate that also claims itself as the first multinational of the
country. The companies of two parliamentarians representing from the
quota of businessmen and industrialists in the Constituent Assembly to
write an inclusive constitution for the newest republic are also
enmeshed in the fraud. Read further below to find out who they are.
The Frauds
Thirty-one out of fifty-two companies under investigation of Inland
Revenue Department (IRD) have been found to evade tax using fake VAT
bills. Among those, twenty-four companies had evaded 2.7 billion
Nepalese Rupees in VAT and income tax through transactions in fake
bills while they had taken back VAT amount of 890 million Nepalese
Rupees by submitting fraudulent certification of payments.
The VAT scam involves large conglomerates such as Chaudhary Group,
Golchha Organisation, Vishal Group, Shanker Group, Varun Developers,
all owned by trading community from India called Marwaris, plus
Bhatbhateni Supermarket of a native Nepalese and even the Chinese
contractor of Chameliya Hydroelectricity Project. These include the
firms of two sitting parliamentarians of Nepal’s Constituent Assembly
– Binod Chaudhary, Chairperson of Chaudhary Group and Diwakar Golchha
of Golchha Organisation. UML, the third largest political party had
nominated Chaudhary and Diwakar Golchha was nominated by Nepali
Congress, the second largest party in the Assembly.
Shanker Group
Among the 31 firms investigated under the scam, most fake bills have
been found in the name of Jagadamba Steels amounting to 800 million
Nepalese Rupees, according to the source in the Inland Revenue
Department (IRD).
The fair payment of VAT would have only been 38% of total amount;
however, after investigation, the tax amount has been fixed to 600
million Nepalese Rupees. Tax evasion implies 13% VAT, 25% income tax
and fine of the same amount plus interest at 15% per annum payable to
the government that makes 75% of the 800 million Nepalese Rupees i.e.
600 million Nepalese Rupees, informed the source.
President of the group, Shankar Lal Golyan who came to Nepal without a
penny from India 40 years ago now owns 18 industries. Jagadamda Steels
is the largest company of the group. Shanker Group’s annual
transactions come around 26 billion Nepalese Rupees, claims Golyan in
his website. After investigation of 52 firms under the scam, the
second list of tax defaulters of 480 firms also include other
companies of the group. Pawan Kumar Golyan of the same group is also
the chairperson of NMB Bank, Nepal’s first commercial bank.
Chaudhary Group
Under this group, three companies headed by the group’s President
Binod Chaudhary and one headed by Arun Chaudhary are also involved in
the scam. Fake VAT bills worth 60 million Nepalese Rupees have been
found from CG Impex and CG Electronics of the group. CG Foods of the
same group is also involved in the fraud. It is one of the five
companies in the final list in course of investigation that has evaded
tens of millions Nepalese Rupees through fake bills, informed the
source in the IRD.
Chaudhary Group, that recently grabbed international headlines with
its decision to open dozens of hotels outside Nepal, sells LG and CG
electronic appliances in Nepal through GC Impex and CG Electronics. CG
Foods produces Wai Wai Instant Noodles in Nepal and India, with
collaboration of Thai Foods Industries, which has gained popularity in
Asia and Europe.
Fake VAT bills worth 160 million Nepalese Rupees have also been found
from Arun Intercontinental of Arun Chaudhary, lawmaker Chaudhary’s
sibling. The IRD had investigated eight wholesale traders of
automobiles that evaded 200 million Nepalese Rupees in VAT among them.
Arun Intercontinental is the largest defaulter, stated the source in
the IRD.
Golchha Organisation
The IRD investigation also found fake VAT bills amounting 60 million
Nepalese Rupees of Him Electronics under Golchha Organisation headed
by parliamentarian Diwakar Golchha. Him Electronics itself is directed
by rising ‘major entrepreneur’ Shekhar Golchha.
Last year, another firm owned by the group, Neoteric Nepal,
distributor of information technology, communications and
entertainment products such as Nokia, HP and the likes, was also found
guilty in previous IRD investigation. The company had come under
scanner after it issued VAT bills in advance dates. Since then, the
IRD had speculated of transactions in fake VAT bills from the company.
However, the biggest tax investigation had been started after fake VAT
bills of more than 200 companies were found in a raid of a firm in
southeast Kathmandu.
Vishal Group
Not so popular but another large conglomerate, Vishal Group’s United
Distributors is also involved in the VAT fraud. Listed under
multinational companies in the course of the IRD investigation, the
company has evaded 100 million Nepalese Rupees through fake bills.
United Distributors deals in cosmetic and daily consumer goods
imported from India and other countries. With strong political access
to the level of Finance Minister, this group has investments in banks
and other financial institution, insurance companies and trading
houses.
The chairperson of Vishal Group JP Agrawal also chairs the board of
NIC Bank while the group’s vice-chairs TR Agrawal and Nirmal Agrawal
are members of the bank’s board too. NIC Bank is the first bank in
Nepal to be provided a line of credit by International Finance
Corporation (IFC), an arm of World Bank Group under its Global Trade
Finance Program. In addition, another deputy of Vishal Group Trilok
Chandra Agrawal is the chairperson of newly formed Bank of Asia and
Anuj Agrawal is board member of the bank. According to the source, the
second list of 480 companies for investigation of fake VAT bills fraud
also includes other firms of the group.
Bhatbhateni Supermarket
Owned by Min Bahadur Gurung, who has recently imported a Mercedes Benz
car through ‘air cargo’ spending tens of millions Nepalese Rupees, one
of the biggest supermarkets of Kathmandu is also involved in the VAT
fraud. The investigation found fake bills worth 80 million Nepalese
Rupees from the Bhatbhateni Supermarket that runs two super stores in
Kathmandu.
Bhatbhateni Supermarket is one of the five companies currently under
investigation that are yet to be confirmed for their tax evasion
amount, informed the source. It is also liable to pay 75% of the total
worth of fake VAT bills, stated the source. Most companies involved in
the scam are owned by Marwaris, the trading community from India, it
is a surprise how Bhatbhateni Supermarket also got enmeshed in the
fraud, one of the IRD officials noted.
Varun Developers
Another tax defaulter is Varun Developers owned by Indian investor
Ravi Jajpuria’s company RJ Corp that rose to fame last year with
introduction of international fast food chain KFC and Pizza Hut in
Kathmandu. Besides KFC and Pizza Hut, the parent company has also
invested in Varun Beverages, the producer of popular drink Pepsi in
Nepal.
Varun Developers sells super-luxurious condominiums named Park View
Horizons it built in northeast Kathmandu. The company that has put up
for sale a single bungalow for 11.9 million to 25.3 million Nepalese
Rupees has been found to evade 150 million Nepalese Rupees through
fake VAT bills. The tax payable for the company has been decided to be
more than 110 million Nepalese Rupees.
Chameliya Hydropower
China Gezhouba (Group) Corporation (CGGC), the Chinese contractor for
civil construction of Chameliya Hydropower Station in Nepal is also
enmeshed in the VAT fraud. The CGGC had bought fake bills to increase
its variation that amounts to 600 million Nepalese Rupees, stated the
source for which the VAT payment of the payment could not be found in
books
.......
Dadhiram
यो रिलेटेड टपिक हो र ??
हामी यो बिषयको बारेमा अरू कुनै माध्ययमबाट छलफल गरौन यो र यस्ता बिषयमा । जस्तै यो बिषयमा कुरा गर्न हामीसँग "ल अब हामी नेपालको आर्थिक अबस्थाको बारेमा कुरा गरौं" जस्त माध्ययमहरू पनि छन् । जस्तै पाटन कजेज अर्थसास्त्र बिभाग, त्रिभुवन बिश्वबिद्यालय क्यापसको अर्थसास्त्र बिभाग जस्ता संस्थाहरूको ईको-नेट जस्ता पत्रिकाहरू पनि अनलाइन छन् यस्ता बिषय समेट्न ।
dhiram Nepal
Kathmandu Nepal
Phone: 9841365906
Hi Bipin
No matter how touching this topic is, we are here to discuss about
free and open source, how we can improve status of Foss in Nepal. The
topic you choose to discuss is in no way related to the theme of this
forum. I kindly request you to refrain from posting such posts on the
future. It is no more than spam for members of this community.
Thanks
ST
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Samar Dhwoj Acharya
its of common interest for everybody. And, we people who claim to be
IT enthusiasts and Open source lovers are one of the most "baudhhik"
group of people. How can we ignore such important issue regarding our
country? Pretty disappointing. Thanks Bipin bro for the information.
On Jun 3, 10:54 am, Bipin Gautam <bipin.gau...@gmail.com> wrote:
> 2011/6/3 Pawan Chitrakar <pchitra...@gmail.com>:
>
> > nice catch!!!!
>
> > 2011/6/3 Dadhiram <yourssym...@gmail.com>
> >> बिपिन जी
> >> यो रिलेटेड टपिक हो र ??
>
> doesn't touch our ICT? and i hope we all stay on the topic, on all
> post all the time.
>
> But again, go figure... tyo rajaswoooooo asulakoooooo bhyaaa what
> percent would it get to the ICT ? Common interests ko dheri kura ma
> na aako topic bhya ra fwd gara maila......... but again, foss-nepal is
> getting soooooooo boring, maybe...... i unscubscribe from the forum
> alltogether.
Sagar Kshetri
The big mistake is from ST who created the thread in wrong group and others who are extending the expired chewing gum with no taste.
Hope this will be the last one.
I apologize once again to the this community for continuing this off-
topic talk.
You still act ignorant. You show complete disregard for the FOSS Nepal
community by breaking every mailing list guideline.
If you really think what you preach about FOSS and that this community
is more than about I.T., why don't you put forth your understanding in
reply to my other post "What does FOSS Nepal stand for?". I know you
won't because even you know you are wrong.
I have studies for tens of hours, attended several talks on FOSS and I
have also spoken to people like Brian Behlendorf (founder of Mozilla),
I have shared the stage with Moinak Ghosh (creator of Belenix). I have
a much deeper knowledge of FOSS and I know I'm correct to request you
to not spam us with your mis-understandings.
I suggest you read Open Sources: Voices from the Open Source
Revolution (http://oreilly.com/catalog/opensources/book/toc.html). But
you can start with
http://en.wikipedia.org/wiki/Open_source
http://en.wikipedia.org/wiki/Free_source
http://en.wikipedia.org/wiki/Free_and_Open_Source_Software
And I suggest you actually read http://wiki.fossnepal.org/index.php?title=Mailing_List_Guidelines
this time.
Tiwaris are not Marwarees. Your remarks don't mean a thing to me. I
can post a lot of derogatory remarks about you too but I don't believe
in biting the dog because it bit me.
Regards
ST
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·´¯`·.¸. , . .·´¯`·.. ><((((º>`·.¸¸.·´¯`·.¸.·´¯`·...¸><((((º>
Mr. Sagar Kshetri (ASK?)
Url: www.sagarkshetri.com.np