Giri Bandhu Tea Estate Corruption

The origins of the scandal trace back to the Panchayat era in the 1960s. In 1964 (2021 BS), Nepal enacted the Land Reform Act, which imposed ceilings on land ownership, one of which is for example is maximum of 10 bighas per person in the Tarai plains. To circumvent these reforms, some landlords registered large landholdings as tea estates, which were exempted as "industrial" land. • On June 11, 2003, under Prime Minister Surya Bahadur Thapa during King Gyanendra Shah's direct rule, another 19 bighas were sold. By the late 2010s, with approximately 280 bighas remaining, the land's value in the expanding Birtamod market had soared, estimated at Rs 200,000 to Rs 3,000,000 per square meter in prime locations. == Land swap scheme and legal changes ==

A critical development occurred in January 2020 (2076 BS) when the government of Prime Minister KP Sharma Oli enacted the Eighth Amendment to the Land Management Act, 1964 (Land Related Act, 2076 BS). This amendment introduced provisions allowing land held by companies above the ceiling to be relocated, exchanged, or sold to pay off liabilities. Critics, including then-Mayor of Kathmandu Balendra Shah, later termed this "policy corruption," alleging the law was tailored to benefit the Giri Bandhu estate and facilitate the land swap. On April 26, 2021, the Oli-led Cabinet approved the Giri Bandhu land swap, permitting the estate to exchange 343.19 bighas of its Jhapa land for parcels elsewhere in Province 1. This decision was justified by proponents as aiding a tea company in "liquidation," but investigators and critics alleged it was a cover to enrich an interest group involving the estate owners and land brokers, notably including businessman Deepak Malhotra. == Legal challenge and Supreme Court intervention ==

In May 2021, Advocate Om Prakash Aryal and others filed a writ petition at the Supreme Court of Nepal, challenging the Cabinet's decision as unconstitutional and an instance of political corruption. On February 7, 2024, the Constitutional Bench of the Supreme Court delivered a landmark verdict, annulling the Oli government's land swap decision. The full text of the verdict was released on May 12, 2024. == Political Developments and Allegations of Cover-Up ==

The Supreme Court's verdict triggered significant political debate. • Balendra Shah, Mayor of Kathmandu, publicly lauded the verdict and accused KP Oli of orchestrating a "Rs 100 billion scam," challenging him to return alleged advance payments from land buyers. 2025 Ordinance and Contempt of Court In July 2024, a new coalition government was formed by the CPN-UML and Nepali Congress, with KP Sharma Oli returning as Prime Minister. On January 10, 2025 (promulgated January 15), this government issued an ordinance amending 29 laws. This ordinance included provisions allowing real estate companies to hold land beyond statutory ceilings and permitting estates like Giri Bandhu to sell or mortgage land above the legal ceiling. The bill faced resistance and reportedly stalled in the National Assembly by April 2025 due to the controversy. Allegations of Political Quid Pro Quo There were also allegations that Rabi Lamichhane, leader of the Rastriya Swatantra Party (RSP) and then Home Minister, remained inactive on the Giri Bandhu case as part of a political understanding with the UML to secure leniency in his own legal matters. These claims were denied by some RSP figures, with RSP Joint Spokesperson Manish Jha stating the party favored an investigation. == See also ==