Shiva Hari Dangal, chairman of Trade Tower Company, is accused of misusing Rs. 3.9 crore after selling shares last Ashad. The issue revolves around leasing land and a house from the Crystal Hotel property, where payment to the rightful owner was delayed despite a formal agreement.
Agreement on lease but payment delayed
Trade Tower’s predecessor, Sankalp Investment and Holding, had signed a lease agreement on Poush 2, 2075 with landowners Murahari Aryal and Mukundmani Aryal for a house and land in Chabahil, Kathmandu. The property included about 4 ropani land with a 12,214 sq ft house, valued at Rs. 3.9 crore as a lump sum payment. However, the contract did not specify when the payment would be made, causing the owners to wait for the money.
Dispute arises over unpaid dues and construction issues
Despite the agreed price, Mukundmani Aryal claims Trade Tower did not pay the money on time. Further, Trade Tower constructed two extra floors beyond the approved plan and inaugurated the building on Baisakh 1, 2081 without the owners’ consent.
Aryal alleges that though the payment was reportedly made between Mangsir and Poush 2075, the amount was withdrawn by Dangal and his associates through 44 bearer checks, mostly in Rs. 9 lakh increments, and was never received by the owners.
Legal action underway after failed mediation
Aryal filed a complaint with the Central Investigation Bureau (CIB) on Baisakh 9, 2082, prompting an investigation that revealed irregularities in the payment process. Dangal offered mediation on Baisakh 11 but Aryal refused, citing fraud, banking crimes, and illegal asset acquisition.
The Kathmandu Police have registered a fraud case against Dangal on Ashad 24. Although Dangal was arrested, he was released on the same day. The police have submitted their investigation report to the government attorney’s office.
Contract terms
The contract states that before construction, the second party (Trade Tower) must prepare the building design, cost estimate, and timeline at their own expense, with approval from both parties. The building should be earthquake-resistant and use quality materials.
Trade Tower is responsible for investing at least Rs. 40 crore within 10 years and managing the leased property. Any decisions about demolition, repair, or partial use rest with Trade Tower.
The building, designed for mixed residential and commercial use, includes basement parking and commercial shops on the ground floor. The lease contract prohibits auctioning the land or building.
Market impact of Trade Tower Company: will shares fall or rise?
Investor confidence in Trade Tower Company is currently shaken due to allegations of financial mismanagement and legal disputes. Market experts suggest this could put downward pressure on the company’s share price as investors may hesitate to invest amid ongoing uncertainties.
On the other hand, if Trade Tower resolves the issues transparently and quickly, demonstrating compliance and strong governance, the shares could stabilize or even recover.
