NADA defies DAO, Moves ahead with federation plan; New leadership to ee elected on January 9

KATHMANDU: The Nepal Automobile Dealers’ Association (NADA) has moved ahead with a controversial decision to transform itself into a federation, openly defying a directive issued by the District Administration Office (DAO), Kathmandu, which had termed the move legally non-compliant and ordered it not to be implemented.

Despite the administration’s written instruction issued on Tuesday, NADA’s 49th Annual General Meeting (AGM), held on Wednesday at a hotel in Lalitpur, endorsed the proposal tabled by President Karan Chaudhary to upgrade the association into a federation. The proposal was passed amid internal dissent, with several members registering formal objections.

Just a day earlier, the DAO, Kathmandu, had instructed NADA not to proceed with the federation-related proposal, stating that such a decision was not in line with prevailing laws. The administration had also directed NADA to publish an election schedule before convening the AGM. However, NADA went ahead with the AGM without issuing any election timetable, disregarding the administrative order.

In its official letter addressed to President Chaudhary and members of the executive committee, the DAO clearly stated that the AGM notice did not include any agenda related to the selection of a new executive committee. It further noted that proceeding with an election schedule during such an AGM, or advancing a proposal to transform the existing Nepal Automobile Dealers’ Association into a federation, would be unlawful. The office explicitly instructed NADA not to carry out or facilitate any such actions.

Notwithstanding the directive, President Chaudhary announced that elections for a new executive committee will be held on Poush 25 (January 9). He said senior legal practitioner Raman Karn has been appointed as the election officer. According to Chaudhary, the newly elected leadership will initiate the necessary processes to formally convert NADA into a federation.

The move has deepened divisions within the organization. A faction led by Akash Golchha, which Chaudhary belongs to, is facing opposition from several general members aligned with the rival group. On Monday, members from the dissenting camp had submitted an application to the DAO, Kathmandu, demanding the AGM be halted, arguing that it was being convened illegally without an approved election programme.

According to NADA’s statute, the executive committee must be elected every two years. Chaudhary was elected president through an AGM held on Poush 20, 2080 BS (January 4, 2024), and the tenure of the current committee is set to expire on Poush 19 (January 3, 2026). The statute also mandates that the election schedule must be published at least 15 days prior to the AGM. This requirement was not met in the AGM held on Wednesday.

Unhappy with both the decision to move towards federation status and the conduct of the AGM without an election schedule, the Golchha faction has also approached the Patan High Court. The court has scheduled a hearing for Poush 13 (December 29) to decide whether to issue an interim order in the matter.

The unfolding dispute has raised serious questions about governance, statutory compliance, and internal democracy within one of Nepal’s most influential automobile sector associations, at a time when the industry itself is undergoing significant structural and regulatory changes.