Industry Ministry Recovers Rs 467 Million in Unpaid Rent

Nepal’s Ministry of Industry, Commerce and Supplies has intensified action against industries operating from government-owned industrial structures and warehouses after years of unpaid rent. The latest enforcement drive has begun to produce results, with businesses clearing overdue payments following warnings that electricity and water services would be disconnected if arrears were not settled within seven days.

The ministry says the campaign is being carried out under the direction of Minister Gauri Yadav, who has pushed for stronger recovery of long-outstanding government dues. Officials reported that Rs 5.66 million was collected in a single day, bringing the total amount recovered so far to Rs 467.31 million.

The renewed collection effort marks a shift from years of unsuccessful requests and routine correspondence. After repeated notices failed to produce payments, the ministry moved to suspend essential services for defaulting industries, arguing that delayed rent had undermined public revenue and weakened financial discipline in the use of government property.

Power Restored to Paying Industries

Electricity connections have been restored to five industries after they cleared their outstanding dues. However, power remains disconnected for 21 other industries that have yet to make payments.

The ministry has maintained that services will resume only after outstanding rent is settled, while legal action will continue against businesses that ignore government directives.

Continental Group Companies Face Further Action

Among the largest defaulters, excluding penalties, are two companies under the Continental Group.

According to ministry records covering the period from the 2018/19 fiscal year to the present:

• Continental Component and Services Pvt. Ltd. owes Rs 37.54 million in unpaid rent.
• Continental Services Pvt. Ltd. has outstanding dues of Rs 10.15 million.

The ministry claims both companies continue to operate government warehouses despite failing to clear their arrears. Internal consultations are underway on additional legal measures after the companies did not comply with official directives.

Officials say industries that settle their dues will have services restored, but enforcement against those refusing to comply with government decisions will continue under existing laws.

The ministry has presented the renewed rent recovery drive as part of a broader effort to strengthen fiscal discipline over the commercial use of government property. It also sends a clear signal to other businesses operating from state-owned industrial facilities that financial obligations to the government will now face closer enforcement.