Private sector protests Golchha's arrest

By A Staff Reporter,Kathmandu, Apr. 25: The private sector has expressed serious concern over the ongoing arrests and detentions of entrepreneurs and business leaders.

Issuing a joint statement on Friday, the umbrella organisations of the private sector—Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries, and Nepal Chamber of Commerce—said that such actions are discouraging the private sector at a time when expectations are high for political stability and an improved investment climate following the formation of a new government.

The Central Investigation Bureau (CIB) on Thursday arrested Shekhar Golchha, former president of the Federation of Nepalese Chambers of Commerce and Industry. According to Nepal Police’s CIB, Golchha was taken into custody for investigation based on a report submitted by the Securities Board of Nepal (SEBON).

The organisations warned that creating an environment of fear among entrepreneurs could have serious repercussions for the economy, employment, revenue generation, and infrastructure development, noting that the private sector contributes approximately 81 per cent to the economy and 86 per cent to employment.

They emphasised that arrests based solely on regulatory reports, particularly in cases of economic offenses, undermine due process.

The private sector has urged the government to adopt a “hear first, detain later” approach, ensuring that individuals are detained only after allegations are substantiated.

Despite assurances from business leaders that they are willing to fully cooperate with investigations and appear when summoned by authorities, arrests in economic cases have continued.

According to the statement, such actions risk destabilising not only individual businesses but also supply chains, the banking sector, and the broader economic system.

“The government has recognised the contribution of the private sector and has begun involving it in policymaking and lawmaking, which we have taken positively. However, the ongoing arrests have further alarmed the private sector, even as the Council of Ministers has already passed a strategy to protect and promote the private sector,” the statement read.

The private sector reiterated that it does not oppose legal action against those proven guilty. 

However, it stressed the importance of upholding constitutional rights, including the presumption of innocence and the right to live with dignity.

After nearly four years of economic slowdown, businesses had hoped that the newly elected, strong government would implement investor-friendly policies and revive economic activity. Instead, they warn that such developments could discourage investment and weaken investor confidence.

They urged all concerned parties to clearly understand and reflect on the fact that the country can achieve prosperity only through private sector investment and the enthusiasm of entrepreneurs.