Court terminates City Market contract

Published On: August 21, 2016 09:21 PM NPT By: Republica


KATHMANDU, Aug 22: District Court of Kathmandu has ordered termination of the contract awarded by the Kathmandu Metropolitan City (KMC) to Surendra Prasad Dahal for operating the City Market.

According to KMC, the court passed the verdict on August 17. 

City Hall, which was not under the KMC then, had awarded the contract to Dahal on lease for nine years to run the 130 shops that are part of the City Market. 

City Hall came under the KMC in 2002. The KMC renewed the same contract Dahal five years ago. 

As per the contract, Dahal has to pay Rs 650,000 per month and increase the deal by 10 percent every year. 
However, a case was filed at the Commission for the Investigation of Abuse (CIAA) of Authority two years ago, stating that the contract was against the law. Immediately, the KMC decided to cancel the contract

Dahal moved the Kathmandu District Court against the cancellation of the contract. “Now, the court has given a verdict in favor of the KMC,” said Mahesh Kafle, information officer at the KMC. “Dahal owes Rs 20.9 million to the KMC.”

Repeated attempts to contact Dahal went in vain. 


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