September 5, 2025, Birgunj — A major controversy has erupted in Birgunj Metropolitan City, as Ward No. 6 Chairman Jayaprakash Shah finds himself at the center of serious allegations involving corruption and fraudulent land transfer recommendations. A complaint lodged with Nepal’s Commission for the Investigation of Abuse of Authority (CIAA) accuses Shah of colluding with local businessmen to illegally transfer land, sparking outrage among residents and businesses in the region. Here’s a deep dive into the unfolding scandal, its implications, and the questions it raises about governance in one of Nepal’s key metropolitan cities.
The Allegations Against Chairman Jayaprakash Shah
On Friday, September 5, 2025, a group of 17 individuals and businesses, including prominent entities like Skyline Infra Limited, Hotel Pujan, and Hotel Country Inn Pvt. Ltd., filed a formal complaint with the CIAA. The petition alleges that Chairman Jayaprakash Shah of Birgunj-6 abused his authority by accepting substantial bribes to issue fraudulent recommendations for transferring land in Adarshanagar (Wards 10 and 4) to the Kedia family, specifically Pradeep Kedia and Madanlal Kedia, known for their controversial business dealings in the area.
According to the complainants, the land in question was originally acquired 52 years ago by the Pashupati Adarshanagar Construction Committee, which plotted and sold it to various buyers. Over the decades, the land has been legally registered under multiple individuals, companies, and organizations through legitimate sales and transfers. However, Shah is accused of issuing a recommendation to transfer this land to the Kedia family based on outdated and invalid plot numbers—specifically, plot numbers 14 (B) and 15 under Rukmini Kedia’s name.
Sunil Gupta, one of the complainants, highlighted that under Section 8 (A) of Nepal’s Land Measurement Act of 1962, previous land survey records are automatically voided, rendering Shah’s recommendation legally baseless. The complaint further notes that the land does not even fall within Ward No. 6, Shah’s jurisdiction, and the cited plot numbers no longer exist, raising serious questions about the legitimacy of his actions. The petitioners assert that this constitutes a clear case of abuse of authority and are demanding strict legal action against Shah and his alleged accomplices.
Procedural Irregularities and Shah’s Defense
Adding fuel to the controversy, the complaint points out several procedural violations in Shah’s recommendation. Local regulations mandate that land transfer recommendations must include proof of tax payment by the relevant landowner, a requirement Shah allegedly ignored. Furthermore, the recommendation letter improperly combines kinship verification and land ownership rights in a single document, which violates established norms.
In response, Chairman Shah has admitted to errors in the recommendation but denies any wrongdoing. He claims he acted in response to the demands of his ward’s voters and insists he did not accept bribes. “I was addressing the concerns of my constituents,” Shah stated, though he has not provided evidence to support his claim of acting in good faith. His admission of errors, however, has done little to quell the anger of the complainants, who see his actions as a deliberate attempt to facilitate illegal land transfers for personal gain.
The Complainants and Their Demands
The group filing the complaint is a diverse coalition of stakeholders, including well-known local businesses and individuals such as Lilnath Nepal (Skyline Infra), Ranjesh Shrestha (Hotel Pujan), Umeshchandra Nepal, Sunil Kumar Gupta, Samjhana Kumari Mathema, Bimal Kumar Sanghai, Shushila Agrawal, Padma Kumari Shahi, Satyanarayan Manandhar, and Shrilal Prasad Rauniyar, among others. They are united in their call for accountability, demanding that Shah, Madanlal Kedia, Pradeep Kumar Kedia, Sanjay Kumar Kedia, and others involved face the maximum punishment under Nepali law for their alleged roles in the scandal.
The petitioners argue that Shah’s actions not only undermine trust in local governance but also threaten the property rights of legitimate landowners and businesses in Birgunj. They are urging the CIAA to conduct a thorough investigation, emphasizing that the case represents a blatant misuse of public office.
Broader Implications for Birgunj
This scandal comes at a time when Birgunj, often called the “Commercial Capital of Nepal,” is grappling with other governance challenges. The city, a major trade hub due to its proximity to the Indian border, has seen its share of controversies, from environmental issues like the pollution of the Sirsiya River to tensions between local officials, as evidenced by recent clashes between supporters of Mayor Rajesh Man Singh and Deputy Mayor Imtiyaz Alam. The allegations against Shah further erode public confidence in the leadership of Birgunj Metropolitan City, raising questions about transparency and accountability in local administration.
The case also highlights ongoing concerns about corruption in Nepal’s local governance structures. The CIAA has been active in investigating similar cases across the country, such as the 2020 corruption charges against Shyam Babu Prasad Chaurasiya, a former ward chairman of Birgunj-16, for undervaluing land to evade taxes. The current allegations against Shah suggest that systemic issues may persist in the region, prompting calls for stronger oversight and reforms.
What’s Next?
As the CIAA begins its investigation, all eyes are on how this case will unfold. If the allegations are substantiated, Shah and his alleged accomplices could face significant penalties, including fines, imprisonment, and bans from public office. For the residents and businesses of Birgunj, the outcome of this case could set a precedent for addressing corruption and ensuring that public officials prioritize the interests of their constituents over personal gain.
The scandal also puts pressure on Birgunj’s broader leadership, including Mayor Rajesh Man Singh, who himself faced a separate controversy in 2024 over allegations of granting citizenship to a “fake” daughter. With the city’s reputation as a vital economic hub at stake, resolving these issues transparently will be critical to restoring public trust.