Private sector unites against Golchha arrest, Warns of severe economic fallout

KATHMANDU: Nepal’s leading private sector bodies have come together to protest the arrest of industrialist Shekhar Golchha, warning that ongoing crackdowns on business leaders could push the country’s economy into a serious crisis.

The Nepal Chamber of Commerce, Confederation of Nepalese Industries (CNI), and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) held a joint meeting on Friday morning and issued a unified statement opposing the arrest.

The meeting, held at 9:30 AM, was attended by FNCCI President Chandra Prasad Dhakal, Senior Vice President Anjan Shrestha, CNI President Birendra Raj Pandey, and Chamber President Kamlesh Kumar Agrawal, among other officials.

Following the meeting, the organizations stated that the arrest was carried out despite the private sector’s willingness to cooperate with the investigation. They accused authorities of creating fear within the business community through what they described as unnecessary detention.

“At a time when the country expected stability and an improved investment climate following the formation of a new government, the ongoing arrests and detentions of entrepreneurs have discouraged the private sector,” the joint statement said.

The statement warned that such actions could have far-reaching consequences beyond individuals, impacting employment, supply chains, the banking sector, and the broader economic system. The organizations emphasized that Nepal’s economy could face a serious downturn if the situation persists.

Golchha was arrested on Thursday evening by the Central Investigation Bureau (CIB) of Nepal Police, reportedly based on findings from the Nepal Securities Board (SEBON). He faces allegations of fraudulent share transactions, manipulation of stock prices, and influencing the securities market.

The three organizations urged the government to adopt a “listen first, detain later” approach in cases involving economic offenses, stressing that arrests should follow only after sufficient evidence is established.

They also cautioned that detaining business leaders solely on the basis of regulatory reports could disrupt the investment environment and undermine investor confidence.

According to the statement, the private sector contributes approximately 81 percent to Nepal’s economy, and any actions that create uncertainty could negatively affect employment, revenue generation, and infrastructure development.

“Entrepreneurs have expressed full readiness to cooperate with investigations and appear before authorities when summoned. Despite this, arrests in economic cases have caused concern and distress across the private sector,” the statement added.

While acknowledging recent government efforts to involve the private sector in policymaking and legal reforms, the organizations said such arrests contradict those positive steps and could create further uncertainty.

They reiterated that there is no disagreement on taking action against individuals proven guilty of wrongdoing. However, they emphasized the constitutional principle that individuals should not be treated as guilty until proven so, and called on the government to act responsibly.

The private sector also noted that the economy has remained sluggish for nearly four years and expressed hope that the new government would implement business-friendly policies to stimulate growth. However, they warned that current developments risk undermining investor confidence even under a strong and stable government.

They concluded by urging all stakeholders to recognize that national prosperity depends on private sector investment and entrepreneurial confidence, calling for a more balanced and predictable regulatory environment.