National 5 (Spotlight Weekly)

Controversial Questions

The business community slams the Revenue Investigation Department's high-handedness in arresting an industrialist

By A CORRESPONDENT

It all began when a container of copper scraps imported by Hulas Wires Industries (HWI) Private Limited was found to be underweight at Kolkata port. The port authorities notified the discrepancy to the HWI officials, who then reportedly brought it to the attention of the Biratnagar customs, where the consignment arrived soon.

Upon scrutiny, the container was found to contain sands, pebbles and stones. The consignment had come all the way to Nepal from the Philippines via Singapore and Kolkata port. Quite clearly, there was foul play involved. Instead of probing the incident carefully, however, Revenue Investigation Department (RID) officials employed a shoot-first-ask-questions-later approach.

The RDI officials subsequently took Mahendra Golchha, managing director of HWI, into custody. And on September 18, after a day-long interrogation, the RID officials demanded Rs.18.3 million in bail from Golchha. This, in itself, would not have been strange if they had not done so in the evening and hours after government offices and banks had been closed for the day. The restlessness they exhibited in forcing Golchha to pay the bail amount or be arrested was quite strange, according to businessmen.

The RID had arrested Golchha on charges of misusing foreign currency worth over Rs.6 million, which was meant for the import of copper scrap as mentioned in the letter of credit.

Golchha, on the other hand, says the foreign suppliers duped him. He says that though his industry itself had requested the concerned authorities to inspect the container once it reached Biratnagar, they arrested him without proper investigation. "If the investigation of the RID proved any wrongdoing on my part, I am ready to face any punishment," he told reporters. "Asking me to pay such a huge bail amount on such short notice and after the banks were closed for the day clearly points to the bad intention of RID of keeping me in jail on false charges."

Golchha said his industries have investments worth Rs.350 million in the country. "The RID does not distinguish between smugglers and businessmen."

Meanwhile, a delegation of businessmen including representatives of the Nepal Chamber of Commerce, Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industrialists and Nepal Overseas Traders Association met Prime Minister Sher Bahadur Deuba and voiced dissatisfaction over the arrest of Golchha and the manner in which he was asked to furnish bail.

Likewise, the meeting of Morang Trade Association and Moran Industry Association roundly criticized the government for unduly arresting Golchha and has warned that such haphazard action would not help the economic condition of the country that is already in recession. "In fact, the RID did not show maturity in handling the case. It should have first investigated the whole case and then identified the real culprit. By taking action in a hurry, it has lost credibility and has also sent a very wrong signal to the entire business community," said an industrialist on condition of anonymity.

The association has also asked the government to take action against the foreign supplier as per the international law. The RID has recorded the statement of Sharad Tibrewala, the agent for the supplier of the copper scraps, and has procured a bail amount of Rs.6.13 million before setting him free. The Morang Industry Association, for its part, has also accused Tibrewala of wrongdoing and has refuted the RID's charges against Golchha.

The copper scrap incident has once again exposed the weakness of government investigating agencies. Hopefully, the authorities now realize the importance of a thorough probe. The general public, too, is in a mood for proper investigation.