The Multi-Billionaire Tycoon Roop Jyoti and his daughter Suruchi in police custody: IGP Khanal took Initiative

10 Nov., Kathmandu:  The district court granted authority to keep former Assistant Minister of the then Royal regime and multi billionaire baron Dr. Roop Jyoti Kansakar and his daughter Suruchi in police custody for three days on charge of housing fraud.

The court allowed the police on Friday to keep them in custody for three days for further investigation.  The Court, however, granted permission to keep them in custody only for three days for further investigation despite permission being sought for 7 days by the police.

Nepal police arrested Roop Jyoti from Tribhuwan International Airport  within four hours that Nepalbahas published news on this fraud case. His daughter Suruchi was arrested from Kathmandu. He was arrested directly from the Airport while  returning home from Singapore by Silk Air, he is charged of  serious   fraudulent conduct  in the name of Housing project.

The Kathmandu Police arrested him from Tribhuwan International Airport at 8:30 pm on Thursday after Silk Airways, which he had traveled  in business class from Singapore to fly back home, had landed. A team of Kathmandu Metropolitan Police Range had already reached the Airport on the basis of information that he was returning home from the foreign soil.

Kathmandu District Court had proved Roop Jyoti, a towering personality in Nepal’s top corporate house, guilty for swindling Bigyendra Krishna Malla of Galkopakha, Kathmandu Metropolis-26 with worth Rs. 12.6 million. Based on this, an arrest warrant was issued on December 6, last year.

However, Jyoti Group had filed a writ petition against the arrest warrant at the Supreme Court. The Court vacated the stay order which opened the door for the police to arrest Roop Jyoti.

Design plotted for Roop Jyoti Kansakar’s Arrest:

It was not an ordinary task to arrest Roop Jyoti, who not only belongs to an old merchant family of Kathmandu, but also a former Assistant Minister for Finance. However, IGP Sarbendra Khanal, who has been taking bold steps in bringing frauds, gangsters, and criminals to book showed, his keen interest on this issue. IGP Khanal had sought approval from Prime Ministerial level for multi-billionaire businessman Roop Jyoti who has been boasting of money and power as his strength.

It became easier to execute the arrest warrant the District Court had issued on December 6 after the Supreme Court annulled the stay order writ petition Roop Jyoti had filed on December 10 last year. The Verdict Implementation Directorate revealed that permission has been obtained for Roop Jyoti’s arrest from top level on that basis.

The source said, “Central Investigation Bureau of the Police, High level officials of Verdict Implementation Directorate, and Inspector General of Police- Sarbendra Khanal sat together, and had discussion over the issue. We sought the consent from the Prime Minister’s residence at Baluwatar for Jyoti being a veteran Businessman. Arrest plan was made only after receiving the green signal from that end.”

Jyoti’s whereabouts was enquired when formal procedures including briefing at top level and arrest warrant were completed. Police was informed that he was in Singapore and arriving Kathmandu on Thursday. On that basis, a joint team of Metropolitan Police and Verdict Implementation Directorate had reached Tribhuwan International Airport to arrest Roop Jyoti.

Only the top leadership level of the police and Directorate were aware of the arrest of Roop Jyoti, leakage of information were likely to occur if they reached lower level, the source said.

This was the news covered by Nepalbahas prior to his arrest…

Police set to arrest Minister of King’s reign

7 Nov., Kathmandu : Police were preparing to arrest former Assistant Finance Minister of Royal reign and vice chairman of Jyoti Group Roop Jyoti Kansakar on the charge of swindling millions of rupees in the name of housing project on behalf of Landmark Developers Pvt. Ltd. It has been learned that Kathmandu Metropolitan Police has been making massive hunt, and he is at large fearing his arrest.

The Supreme Court, which has vacated the writ filed  by Roop Jyoti at this Court requesting for stay order that the district court had issued an arrest warrant with the accusation of fraud case earlier.  This has paved the way for his arrest. A twin bench of Chief Justice Cholendra Shamsher Rana and Justice Prakash Dhungana annulled the stay order.

Interim order was issued earlier by the Supreme Court not to arrest Roop Jyoti until the case was finalized.

Company Registered in 2013

Following the whim of making investment in real estate business by most of the top businessmen in Nepal, Jyoti Group which is considered a renowned corporate house in Nepal also registered a company by the name of Landmark Developers Pvt. Ltd in 2013 with a view to invest in housing project.

Jyoti Group owns share worth Rs. 5 million in the company with Rs. 100.01 million as its paid up capital. An automobile Shyakar Company of the same group has its share investment of Rs, 95 million in this Company.  Jaya Spinning Mills Pvt. Ltd, which had earned infamy for swindling the public by amassing their wealth in the name of constructing houses at small investment for middle class family sometimes ago also has its share investment of Rs. 10,000 with Landmark Developers Pvt. Ltd.

Worth Millions in the name of Advance Booking

The denizens from within and outside Kathmandu valley booked for owning houses that were going to be built at Bansbari, Kathmandu by depositing Rs. 1 million by every individual customer as an advance money  when an old and prominent business house Jyoti Group of Nepal was ready to invest in the housing project. It was agreed that Landmark Developers Pvt. Ltd would construct residential edifices on the land including that of the operator of Jyoti and Company Pvt. Ltd owned by Jyoti Group located at Kathmandu Metropolis-3 with the purpose of selling them out.  When construction of houses was finalized, interested buyers were invited in April 2014 for buying houses.

The price for the land area of 0-6-3-2.16  in plot no. 19 of the land of Kathmandu Metropolis-3 was fixed at Rs. 21.4 million 19 thousand and 750. Rs. 1 million was required to be deposited as an advance booking and the rest to be paid at the time of land registration and ownership transfer to the perspective owner.  Likewise, commitment was made to handover the land and properties within two years of advance booking upon agreement on home design was reached between the two parties.

Company had committed to construct each house in an area of 7 Ana with its commercial provision as well. The Landmark Developers that started construction project in May 2014 handed over the entire construction works to CE construction. The CE construction that has gained popularity in the areas of housing and construction was not only responsible for housing construction works but also was granted authority for booking and selling of those properties.

The authority for construction and selling of houses has been mentioned in the Agreement signed between CE construction and Landmark. Likewise, profit sharing between these two parties have also been mentioned in that Agreement. By August, 2014, customers who had made advance booking paid additional Rs. of 12.6 million, 75 thousand to CE construction. Such amount is appeared to have received by the CE construction.

All houses were booked where construction of about 22 houses were set for the housing project. However, the construction works were going at a snail pace.  Amid such sluggish construction works, they were halted completely for a year after a massive earthquake that struck the country on April 25, 2015. The project, that resumed its works only after a year of worst natural disaster, completed in 2017.  Hassles started to erupt at the time of handing over the properties to the respective owners.

The fraud case surfaced this way

The case came into open after the victim asked the court for help against serious fraudulent activities related to real estate transaction by the renowned Jyoti Group located at Kantipath, Kathmandu. It was agreed with Bigyendra Krishna Malla of Metropolitan – 4 of Kathmandu that a house will be built on plot number 19 on the land set aside for construction of residential buildings and handed over to him within two years of advance payment. But, in contrary to the agreement neither the house was constructed nor the plot of land was handed over as agreed even after four years of making advance payment.

Bigyendra Krishna Malla started seeking for legal remedy when it became apparent that Jyoti Group had swindled him. Bigyendra Krishna Malla, who happened to trust CE construction and Jyoti Group had handed over the advance amount to the General Manager of CE construction, Mr. Shambhu Prasad Funyal.  Mr. Funyal had received advance money from each client for housing construction in similar way and handed them over to them accordingly. Mr. Malla had been persistently demanding with CE Construction and Mr. Roop Jyoti for ownership registration of house when contrary to agreement of handing over the building within two years, they (CE Construction) remained quiet with no construction taking place even in four years. Mr. Malla explained that Mr. Roop Jyoti was often times dilly-dallying with excuses like design blueprint had yet to be approved or agreement with the contractor had not been signed.

Bigyendra Krishna Malla was heard grudging that he was being victimized as building was not constructed and handed over to him even after four years of making payment in advance. He was compelled to file a complaint after Roopjyoti threatened him of being the richest merchant of Nepal, and consequences of making noise could be detrimental to him.

Thus, when it became apparent that Roop Jyoti has indulged himself on fraudulent activities by deceiving also about the landmark on his land, a case was filed at the Kathmandu District Court for taking necessary action against the adversaries. But Roop Jyoti group after their fraudulent activities tried to save themselves from the case by misleading it with a claim that it should fall under the civil case premise. The Supreme Court then dismissed the writ and ordered that they can be arrested.

While Mr. Funyal was authorized for construction on other plots, CE has made a claim that it is ignorant of receiving advance payment for plot number 19, and it was not for sale.  But, it is clearly mentioned in advertisements published in 2014 that Mr. Funyal was authorized for conducting transactions.

Mr. Funyal has explained to the Higher Court that the issue surfaced due to mischief of Jyoti Group and Mr. Bigyendra Krishna Malla has been victimized. Mr. Funyal has conceded at the Court that he was fully authorized to receive advance for construction and sale of buildings on the plot.