The arrest of Arun Chaudhary, the chairman of CG Holdings, by the Central Investigation Bureau of Nepal Police on Thursday has divided the opinion among the business community, political circle and the government.

The CIB arrested Chaudhary and two others associated with the Bansbari Leather and Shoe Factory land scam. Arun is a brother of Nepal’s only dollar billionaire, Binod Chaudhary, who is also a member of the federal parliament. Since Arun comes from an influential business family, his arrest has piqued the interest in people from different walks of life.

A day after the arrests, Deputy Prime Minister and Minister for Home Affairs Narayan Kaji Shrestha defended the action and asserted that “those who looted the state” should not go unpunished just because they have connections with powerful people.

Shrestha also said that his ministry and Nepal Police have received pressure from various quarters to release Chaudhary. Arun has been accused of involvement in illegally converting 10 ropani [0.5 hectares] of public land belonging to the Bansbari Leather and Shoe Factory into private property. Along with Chaudhary, the CIB also arrested Ajit Narayan Singh Thapa, former executive chairman of the shoe factory.

Political leaders, civil servants and businessmen, whoever looted the state in the past, exert pressure by using their connections after arrest, said Shrestha while inaugurating a provincial security meeting in Pokhara.

The business community expressed concerns over the arrest on Thursday. The Federation of Nepalese Chamber and Commerce and Industry (FNCCI) and the Confederation of Nepali Industries (CNI) have asked the government not to arrest businessmen arbitrarily. They also demanded Chaudhary’s release.

Sources at the home ministry told the Post that pressure had been piling on the prime minister, the home minister and the inspector general of Nepal Police from different quarters to release Chaudhary on health grounds and to conduct a probe by keeping him out of custody.

Since the government promotes good governance, it is not going to tolerate any pressure, said Shrestha. “If a leader involved in a crime is arrested, they question why our leader is arrested,” he said about political cadres’ attitude towards such crackdowns on crime.

“When a civil servant is arrested, we hear the same noise. Why a civil servant is arrested? It will diminish the morale of civil servants, this kind of complaints we receive,” Minister Shrestha added.

“When an industrialist or a businessman does a crime and we initiate action against him, then we see statements against arrest and pressure starts piling on us,” he said, a day after Chaudhary’s arrest.

The business community argues that the government “should not harass us since we are paying taxes”, said Shrestha. “They say ‘we’re the main pillar of the country’s economy’”.

Nobody has the permission to rob the state of its resources, the minister stressed.

“There is no escape or exemption from forgery and crimes. The country will not change if pressure to release criminals on the basis of their political connections sustains,” said the home minister.

Binod Chaudhary, the elder brother of Arun, rushed to the latter’s defence on Thursday. He raised the issue on Friday in a meeting of the Nepali Congress. The dollar billionaire is a congress member of parliament. The government has taken revenge on us, Chaudhary told the parliamentary party meeting of the Congress.

“Basically, the prime minister and the home minister took revenge on our family,” a Congress lawmaker quoted Chaudhary as saying.

The government is terrifying the business community, Chaudhary said after the meeting. “We purchased the land of the Bansbari Leather and Shoe Factory following the due process. This particular incident happened long ago but now the government is raising this issue to terrorise the business community,” said Chaudhary.

The incident, happening ahead of a planned investment summit, lowers the morale of the business community, he argued. Congress President Sher Bahadur Deuba gave Chaudhary the time to clarify the matter of his brother’s arrest.

The Congress meeting made no decision, said Ramesh Lekhak, the party’s chief whip. The party’s statement issued after the meeting did not mention the arrest.

Some Congress lawmakers also criticised Chaudhary’s arrest. It was designed by the prime minister and the home minister, said Sunil Sharma. The Dahal-led government is arresting industrialists and taking money “under the table”, he alleged.

The arrests of Min Bahadur Gurung, the Bhatbhateni supermarket owner, and Arun Chaudhary were designed by Prime Minister Dahal and Home Minister Shrestha, Sharma said.