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Fresh case against Sugam Gas owner likely

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ITAHARI, Oct 19: Even though local administration avoided taking stringent action against Sugam Gas Company (SGC) that was charged with circulating tampered LPG (liquefied petroleum gas) cylinders in the market, market inspection officials said they are preparing to file a case against SGC proprietor Shiva Prasad Ghimire, charging him with exposing customers to life threatening risks.



If a case is actually filed and the court gives a verdict against Ghimire, he could face a fine of half a million rupee or imprisonment up to 14 years or both, as per the Consumers Rights Protection Act (CRPA).[break]



Local administration had earlier filed a case against Ghimire, charging him with flouting Black Marketeering Act. However, District Administration Office (DAO), Sunsari, released him on a bail of Rs 3.84 million about one-and-a-half months ago.



Officials at Cottage and Small Industry Office (CSIO) in Sunsari - the authority entrusted to uphold consumers´ rights - said they have started the process to file charges against Ghimire as per CRPA.



"We recently forwarded a file in this connection to the District Attorney (DA). The DA has asked for more evidences. We are currently collecting more evidences against SGC proprietor," said Rama Nath Sharma, chief of CSIO.



He informed Republica that the office would furnish all additional details to the DA in a couple of days.



DA Tikendra Dahal said he would file the case against Ghimire as soon as CSIO submits him the chargesheet, incorporating all details related to SCG and Ghimire.



Ghimire was confirmed by a high-level committee of the Ministry of Industry (MoI) in June this year as the person who masterminded the collection of cylinders belonging to competitors from the market - an act that is against the regulations of Nepal Oil Corporation (NOC) as well as the Department of Commerce (DoC).



His action had surprised 24 different LPG bottling companies that suddenly found their cylinders disappearing from the market. It was a violation of competition law as it inflicted instant loss of property and market share on competitors.



That´s not all. He was also found circulating tampered cylinders with re-fitted foot and neck rings - something that substantially weakens the capacity of the cylinders to withstand pressure and render them prone to leakage and explosion. That kind of tampering directly threatened the lives of some 25,000 consumers; they could have met with accidents anytime.



Ghimire was caught red handed when the Bureau of Standards and Metrology conducted a sudden raid at Nepal Petroleum Trade Link, another company belonging to Ghimire, on May 5 this year.



Officials had found and seized 15,314 cylinders of 24 different companies at its premises. They also found thousands of foot and neck rings (to be fitted on other company´s cylinders) with the SGC mark engraved on them.



As the MoI investigation team pinned down Ghimire for the grave crime, then acting minister for industry Krishna Bahadur Mahara on June 11 decided to scarp SGC´s operating license and instructed the authority concerned to take strict action against him.



However, instead of implementing the decision, subsequent Industry Minister Mahendra Paswan in August decided to suspend its license for six months and let Ghimire walk scot-free on payment of a fine of Rs 500,000. Paswan´s decision had come just prior to his quitting office.


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