KATHMANDU, May 24: The private sector has expressed deep concern over the arrest of Kailash Sirohiya, the chairman of Kantipur Media Group, stating that the arrest has further dampened the morale of entrepreneurs.

In a joint press release issued by the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), Confederation of Nepalese Industries, and Nepal Chamber of Commerce, Sirohiya's arrest was highlighted as a matter of serious concern.

The private sector asserts that actions such as arrest and detention based on complaints do not convey a positive message, exacerbating the already low morale of entrepreneurs.

"We firmly believe that anyone found to have violated the law should face legal consequences. However, we emphasize that resorting to arrests and detentions solely on the basis of complaints does not promote a conducive environment for business," says the joint statement.

The statement mentions there is the unsettling trend of arrests being made without allowing individuals the opportunity to present their side of the story. The private sector argues that such practices instill fear among entrepreneurs and businessmen, adversely impacting investor sentiment.