Kathmandu – Managing Director of CG Holdings, Arun Chaudhary, has been arrested by the police from Lazimpat on Thursday afternoon.

He is the brother of Nepal’s only billionaire, Vinod Chaudhary, who is also a member of the federal parliament. Arun Chaudhary is accused of illegally converting 10 acres of public land of Bansbari leather and shoe factory into private property.

Chaudhary was arrested by the CIB on Thursday and brought to the Kathmandu District Court for permission to keep him in custody. According to Chandra Prasad Panthi, Information Officer of Kathmandu District Court, the bench of District Court Judge Madhav Prasad Ghimire has extended the deadline to keep Chaudhary in custody for four days.

The police also arrested Ajit Narayan Singh Thapa on the charge of misappropriating the land of Bansbari leather shoe company. Thapa was the then chairman of leather shoe company.

The Bansbari Leather and Shoe Factory was established in the 1960s as a state-owned enterprise with the support of the Chinese government. However, later the public company sold the factory to a private company saying that it was incurring regular losses.