Chaudhary Group faces issues in Nepal
Nepal’s billionaire business magnate Binod Chaudhary’s Chaudhary Group which has extensive interests in Sri Lanka in banking, hotels and recently in the auto industry, has been facing governance issues in Nepal.
His company, CG Motors has faced repeated allegations of tax evasion in Nepal. In 2024, the company imported 30 King Long XMQ 6520 electric microbuses as 14-seaters under HS code 8702.40.30, incurring a 10 per cent customs duty, Nepal Biznessnews reported. Months later, an additional 50 units of the same model were declared as 15-seater minibuses under HS code 8702.40.20, reducing the duty to 1 per cent.
According to investigations by Nepal fiscal authorities, this misclassification resulted in a tax evasion of approximately NPR 14.5 million. The vehicles also failed to meet Nepal’s technical standards for minibuses, including weight and seat specifications, highlighting regulatory gaps exploited by the company. CG Motors has partnered with John Keells Holdings (JKH) to establish John Keells CG Auto, which distributes China’s BYD EV brand in Colombo and beyond; not the line of electric vehicles marketed in Nepal. The local subsidiary is also facing issues of engine specification with the Customs with the matter now before Sri Lanka courts.
Although the joint venture has the potential to accelerate the production of clean vehicles, the shadow of continued litigations in Nepal has raised concerns over governance, compliance, and transparency.
In response to a query from this newspaper to Chief of the Group Binod Chaudhary seeking comment on these matters and the company’s governance practices, in particular in light of its expansion in Sri Lanka, a spokesperson of his company declined to comment and said for all matters relating to EV in Sri Lanka, should be directed to JKCG. The newspaper has sought a clarification from JKCG, at the time of going to press. The Chaudhary group has a majority stake in Union Bank of Colombo, which is offering leasing facilities to buyers of BYD vehicles in Sri Lanka, and stakes in many hotels in Sri Lanka.
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