Industrialist Dr Roop Jyoti released from police custody

Former state minister of finance and renowned industrialist Dr Roop Jyoti – who was arrested on November 7 for his alleged involvement in the housing scam – and his daughter Suruchi Jyoti has been released from Metropolitan Police Circle in Durbarmarg this afternoon.
Dr Jyoti was released after Bikendra Krishna Malla, who earlier lodged a fraud complaint against the industrialist, withdrew his complaint. However,
Police released Dr Roop Jyoti after it received letter from the District Government Attorney’s Office, according to Senior Superintendent of Police (SSP) Shyam Gyawali. “Earlier today, the District Attorney Office Kathmandu had decided not to prosecute him,” he said, adding that the AOG office also asked the police to release him on the court date immediately.
Earlier, Bigendra Krishna Malla filed a case against Jyoti Group alleging them of housing fraud. Malla had complained that he paid Rs 27.6 million in instalments – since September 2014 for a house at Bansbari in Budanilkantha – to Landmark Developers. Jyoti Group has a stake in the Landmark Developer Malla claimed he still has to get possession of the house. The housing project was developed by CE Construction. According to police, Malla and Jyoti had previously agreed to resolve the dispute but Malla later backed away.
Police had arrested Dr Roop Jyoti on the charge of housing fraud on November 7.
After Malla filed a case, police issued an arrest warrant last December. But Dr Jyoti had immediately filed a writ against the arrest warrant and taken stay order from the court. However, a double bench of Chief Justice Cholendra SJB Rana and Justice Prakash Dhungana had vacated the stay order on Jyoti’s case on November 5.
The court had allowed police to investigate Dr Jyoti by keeping him in custody for three days initially and then for another five days. But after ‘suspected out of the court settlement’, Malla took his case back. The police insider, however, claimed that such practice of extortion using the government machinery is neither the first nor last but most of the industrialists do not go to police or court but settle out of the court due to fear. “The stable and two-third majority government should have instilled business confidence in the private sector but such incidents have terrorised them,” said an industrialist, who opines that the country will have to pay for such ‘suspicious adventures’ of the police and the government. “Some of the people near the power centre are running a extortion usiness misusing the government machinery.”

Arrest of Dr Jyoti terrorises Nepal Inc

The arrest of Dr Roop Jyoti has terrorised the private sector.
The private sector – that has been hoping for growing economic activites due to two-third majority stable government – slammed the decision to arrest industrialist Dr Roop Jyoti stating that the move has not only eroded the confidence of the business community but also sent a chilling signal that the state machinery could be misused to intimidate the private sector.
The Kathmandu District Court had granted the police permission to arrest him on Tuesday. Dr Roop Jyoti – the vice chairman of Jyoti Group – has been arrested Thursday evening while he was returing from Singapore by Silk Air.
“The government move will certainly deteriorate the confidence of the business fraternity,” according to president of Nepal Chamber of Commerce (NCC) Dr Rajesh Kaji Shrestha. “Neither will it send a positive message,” he said, adding that the authority will have adopted an alternative measure instead of arresting a reputed industrialist like a criminal.
Dr Roop Jyoti is also a brother of Padma Jyoti, who is the former president of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI). Jyoti Group is considered a business house that believes and acts on fair and ethical business.
The private sector organisations – FNCCI and NCC – denounced the arrest of Dr Roop Jyoti. Issuing a press note yesterday, the FNCCI said that its attention has been drawn toward the arrest of Dr Jyoti from the airport while returning home, and his condition under the detention.
Warning that such highhandedness against industrialists and businesspersons in the country can make an adverse impact on the environment for domestic and foreign investment, the private sector asked the state agencies to treat businesspeople with respect in line with the concept of rule of law.
Earlier, the court has permitted the arrest warrant against him on charge of cheating Rs 13.6 million in a land transaction case filed by Bigendra Krishna Malla. Malla, who claims he paid Rs 12.60 million for a house in Kathmandu-3 at Bansbari, said he was neither given a house nor refunded money.
The Metropolitan Police Range, Kathmandu, had arrested Dr Roop Jyoti and his daughter Suruchi on Thursday evening and remanded the duo on Friday to police custody for three days.
The private sector sees an ‘invisible hand’ in issuing arrest warrant against the family members. “With the political backing, somebody is playing foul to tarnish the dignity of established entrepreneurs,” the private sector said, adding that Dr Roop Jyoti has neither received the money nor promised to provide a house. Landmark Developers – where CE Construction and Jyoti Group owns stake – has sold the land, where the developer was supposed to construct the house. But the devastating earth quake in 2015 has delayed the construction.
As managing director of CE Construction Sambhu Phuyal had made the deal and received the installment money without receiving retaining right from Jyoti Group. Phuyal had received the money from Malla on April 6, 2016 to construct a residential building on a land plot developed by Landmark Developers Pvt Ltd. After failing to hand over the committed property on time, the money was returned to Malla on December 1, 2018 – three days before Malla filed cased at the Kathmandu District Court – which he refused to take. But since Malla did not accept the money back that he paid in installments, Dr Roop Jyoti deposited the money at the court. However, the power play made the case complicated as Malla went to power centres and used state machinery to out Dr Roop Jyoti behind the bars.
Phuyal had also admitted before the High Court that he had received the money without taking the authority from the concerned party. Malla claimed that Dr Roop Jyoti should provide him either a house – as promised by the Landmark Developers – or pay Rs 40 million.
Meanwhile, demanding his immediate release, a group of business people staged a silent demonstration at Maitighar Mandala in Kathmandu to protest against the arrest of Dr Roop Jyoti.

Dr Roop Jyoti remanded

Kathmandu District Court has allowed the police administration to remand former assistant finance minister and industrialist Dr Roop Jyoti and his daughter Suruchi into custody for three days, though the police could have investigated letting them out of the custody.
The police will investigate against the duo for three days on charge of fraud.
Dr Roop Jyoti was detained yesterday evening from Tribhuvan International Airport (TIA) at around 8 pm shortly after he returned from Singapore by Silk Air for his alleged involvement in the housing procurement scam, according to the police.
Last December, Police had issued an arrest warrant against Dr Roop Jyoti on a complaint of Bikendra Krishna Malla that Dr Jyoti had swindled him in a housing project but the vice-chairman of the Jyoti Group Dr Roop Jyoti refuted the charges. Malla complained that he had paid a total of Rs 27.6 million in different installments to buy a house at Basbari in Budhanilakantha to Landmark Developers Pvt Ltd but no house had been provided to him. Jyoti Group was one of the investors in the Landmark Developers, though the housing project was developed by CE Construction Pvt Ltd.
Malla demanded he be paid Rs 40 million or provide the house, which Dr Roop Jyoti, according to him, was not completed due to slowdown post-earthquake in 2015.
Kathmandu District Court had allowed the police to arrest Dr Roop Jyoti for allegedly duping people in housing business. But Jyoti moved the Supreme Court (SC) seeking to vacate the order. The SC also issued the interim ruling not to arrest him on the case. But after a year, the apex court vacated the interim order paving the way for Kathmandu police to arrest him and launch investigation into the case.
The Jyoti Group of companies – that offers a diverse range of products and services, from core industries such as iron, steel and textile yarn to finance and travel related services – is one of the reputed conglomerates that believes in fair and ethical business practice in Nepal.

Police arrest industrialist Dr Roop Jyoti

Police today evening arrested former state minister of finance and renowned industrialist Dr Roop Jyoti on charge of fraud, from Tribhuvan International Airport (TIA). Dr Jyoti represents one of Nepal’s top corporate houses Jyoti Group as vice president.
A team from the Central Investigation Bureau (CIB) under Nepal Police arrested Dr Jyoti and his daughter Suruchi Jyoti from TIA at around 8:30 pm, after his Silk Airways flight from Singapore landed. “A team of police from the Metropolitan Police Range Kathmandu detained him and his daughter from the TIA at around 8:30 shortly after he returned from Singapore,” confirmed SSP Uttam Raj Subedi of Metropolitan Police Range, Teku.
Dr Jyoti was held for his alleged involvement in the housing procurement scam in the capital, he said, adding that the police is launching probe into the scam.
Last December, the police had issued an arrest warrant against Dr Jyoti on complaints that he was involved in housing fraud worth millions. Following his arrest warrant, Dr Jyoti denied his involvement in any housing fraud and immediately filed a writ against the arrest warrant. And the court gave the stay order not to arrest him.
However, a double bench of Chief Justice Cholendra Sumsher Rana and Justice Prakash Dhungana vacated the stay order on Jyoti’s case on Tuesday paving the way for his arrest.
Bikendra Krishna Malla filed a case against Jyoti complaining that he had paid a total of Rs 27.6 million in different installments for a house at Basbari in Budhanilakantha to Landmark Developers Pvt Ltd but the company did not provide him the house.
Landmark Developers Pvt Ltd is a joint venture between Jyoti Group and CE Construction Pvt Ltd. When the developer failed to provide house as promised and Malla went to Dr Roop Jyoti as he was the one representing Jyoti Group in Landmark Developers. Malla and Dr Jyoti also agreed to resolve the dispute but Malla later backed away and insisted he be provided the house he was promised.
But Jyoti deposited the amount at the Court as Malla bargained either he will accept double the amount or the house. Malla went door-to-door from one minister to another and finally it was Home Minister Ram Bahadur Thapa Badal, who issued a letter to the Police Headquarters asking the state machinery to take action, according to the informed sources. “The arrest of Dr Roop Jyoti was not necessary as he was not going to run away or destroy any proofs against him,” Police insiders said, adding that Police could have investigated against him without arresting him. “It is the case of misuse of state power for the extortion,” said one entrepreneur, who claimed that he also went through the same condition. “But I had no courage to go behind the bar and I succumbed against state power and paid hefty sum not to be arrested.”
The Jyoti Group – that offers a diverse range of products and services, from core industries such as iron, steel and textile yarn to finance and travel related services – is comparatively one of the cleanest corporate houses in terms of ethical business practice.