Fiscal Nepal
First Business News Portal in English from Nepal
Santosh shah
KATHMANDU: The secretariat of renowned Nepali chef and former BBC MasterChef UK first runner-up Santosh Shah has released a detailed statement outlining its version of events surrounding his recent arrest, arguing that several media reports and social media narratives have failed to present the complete facts behind the dispute.
The statement provides a chronological account of the controversy, tracing its roots to the acquisition of the former Sila Restaurant in Kathmandu and the subsequent establishment of Mithila Thali, a restaurant aimed at promoting authentic Mithila cuisine.
The secretariat maintains that the dispute is essentially a commercial disagreement involving payments, documentation and contractual obligations, rather than an intentional act of fraud or criminal wrongdoing.
According to the statement, the controversy dates back to the period when Arjaba Holdings Pvt. Ltd., the operator of Sila Restaurant in Gairidhara, Kathmandu, was experiencing severe financial difficulties.
The company was reportedly struggling to repay bank loans and was under pressure from the property owner to vacate the building.
At that stage, Santosh Shah and his business associates decided to acquire the restaurant’s assets and transform the establishment into Mithila Thali, a concept focused on promoting traditional food from Nepal’s Mithila region.
The secretariat says the transaction was intended to provide a practical solution for both parties while enabling the expansion of the Mithila Thali brand into Kathmandu.
According to the statement, Mithila Thali and Arjaba Holdings entered into an agreement valued at Rs 2 crore 25 lakh for the purchase of assets associated with Sila Restaurant.
The secretariat claims that the transaction extended beyond the direct purchase agreement.
It states that Mithila Thali also facilitated settlement of liabilities that had accumulated under Arjav Holdings.
Among the payments cited are:
These payments were reportedly made directly to the concerned parties to ease the transition process.
The statement further claims that Mithila Thali assisted in servicing loan obligations that Arjaba Holdings had with Nepal Bank Limited.
According to the secretariat, installments relating to the company’s bank loan were paid on multiple occasions to help the financially troubled company meet its obligations.
In addition to these payments, several other transactions were reportedly completed through cheques and formal banking channels.
The secretariat argues that these payments demonstrate continuous efforts to honor the commercial agreement and support the transition of ownership.
The controversy intensified after claims surfaced that approximately Rs 25 lakh remained unpaid.
However, the secretariat strongly disputes that figure.
According to its version, the amount was not left outstanding and significant payments had already been transferred through banking channels into accounts linked to Arjaba Holdings.
The statement provides the following breakdown:
The secretariat says these transactions amount to a total payment of Rs 28.25 lakh.
Based on this calculation, it argues that claims regarding an unpaid Rs 25 lakh balance are misleading and inconsistent with documented banking transactions.
Another major point of contention concerns the intended recipient of payments.
According to the statement, Shakuntala Adhikari Thapa, who claimed to represent Arjaba Holdings, sought payment through a personal bank account.
However, Mithila Thali maintains that it consistently followed the contractual arrangement by making payments to company-related accounts rather than personal accounts.
The secretariat argues that its approach was intended to ensure transparency and compliance with corporate financial procedures.
The dispute reportedly deepened due to disagreements over documentation.
The secretariat claims that despite continued payments under the agreement, Arjaba Holdings failed to provide necessary bills and supporting documents relating to the transferred assets.
Furthermore, after completion of the purchase process, Mithila Thali says it repeatedly requested tax clearance certificates and other required documentation from the seller.
According to the statement, those documents were not provided despite multiple requests.
The absence of these documents allegedly complicated efforts to formally complete the transaction and verify all obligations.
The secretariat says that after various payments were accounted for, the actual disputed amount had been reduced to only Rs 450,000.
According to the statement, the Kathmandu District Court had issued a decision directing payment of that amount.
However, Santosh Shah’s side says preparations were underway to challenge the ruling in the High Court.
The secretariat argues that the legal appeal period had not yet expired when authorities moved ahead with the arrest.
It therefore contends that judicial remedies remained available and that the dispute should have continued through legal channels.
The controversy escalated dramatically when the Central Investigation Bureau (CIB) of Nepal Police moved to detain Shah.
The secretariat questions the necessity of sending a CIB team to Janakpur for the arrest.
According to the statement, Shah had never attempted to evade authorities and remained available for communication throughout the process.
The secretariat further claims that Shah had personally visited a police office approximately one week before his arrest, contradicting public speculation that he had gone into hiding.
Following the arrest, the secretariat issued a strongly worded response criticizing the action.
The statement describes the arrest as “hasty,” “unnecessary” and “regrettable.”
It argues that the incident has harmed the reputation, credibility and professional standing that Santosh Shah has built over many years in Nepal and abroad.
The secretariat further alleges that the arrest has contributed to what it describes as an organized effort to damage Shah’s public image and reputation.
The statement also emphasizes Shah’s broader mission of promoting Mithila culture and cuisine.
According to the secretariat, Mithila Thali was established in Janakpur to preserve and promote traditional Mithila food heritage.
The Kathmandu branch in Gairidhara was subsequently launched as part of an expansion strategy intended to introduce Mithila cuisine to a wider audience.
Over recent years, Santosh Shah has become one of Nepal’s most internationally recognized chefs, gaining prominence through his participation in the BBC’s MasterChef: The Professionals and through various culinary promotion initiatives.
Santosh Shah has since been released from custody.
The secretariat says he is preparing to publicly address the arrest, the restaurant acquisition process, the disputed financial transactions and other related issues in greater detail.
The statement states that further evidence and explanations will be shared with media organizations in the coming days as Shah seeks to present what he describes as the complete story behind the business dispute that ultimately led to his arrest.
The case has drawn widespread attention across Nepal’s hospitality, business and legal sectors, with many observers closely watching how the commercial dispute, court proceedings and public allegations develop in the weeks ahead.
No democratic nation should create the impression that internationally recognized entrepreneurs, chefs, artists, innovators, investors, business leaders, and cultural ambassadors can be publicly disgraced before their cases are fully tested in court.
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