Government Defies Supreme Court Ruling, Electricity and Water Lines Cut for 21 Industries

Despite the Supreme Court rejecting the review petition, Industrial Area Management Limited has disconnected the electricity and water lines of 21 industries. While the Supreme Court ruled that only rent increases after 2079 BS can be collected, the Limited continues to pressure industries by demanding rent dating back to 2075 BS. Ejaz Ahmad, president of Nepal Industrial Area Industry Federation, accused the Limited of cutting electricity and water lines without prior notice.

June 19, Kathmandu.

Although the Supreme Court dismissed the review petition filed by Industrial Area Management Limited, the Limited has, for a third consecutive day, cut the electricity and water supply lines to 21 industries. Managing various industrial areas across the country, the Limited has been disconnecting water and electricity lines over disputes related to land lease payments.

The Supreme Court’s decision allowed collection of rent increases only after 2079 BS; however, the Limited is insisting on rent payments dating back to 2075 BS, pressuring the industries. Following the Court’s ruling, the Limited filed a review petition, which was rejected by the Supreme Court on Thursday. Henceforth, the Limited can only collect rent increases incurred after 2079 BS.

Rather than adjusting rental disputes according to the Supreme Court’s verdict, the Limited has continued to cut utility lines, stated Ejaz Ahmad, president of the Nepal Industrial Area Industry Federation. “In the meantime, industries have been paying rent, although some dues might remain. Some may have even paid excess rent. After the latest Supreme Court ruling, collections should have been made by calculating how much each industry has paid and how much remains,” Ahmad said. “However, without clarifying whether the rent pertains to 2079 BS or 2075 BS, the electricity and water lines have been forcibly cut.”

The Limited’s regulations allow cutting off electricity and water lines only when arrears on these utilities are unpaid. Ahmad accused the Limited of misusing these rules due to rental disputes. Additionally, the industries received no written notice regarding disconnection of electricity lines.

According to the Limited, out of the 21 industries disconnected today, 12 have already settled their dues. Furthermore, 21 industries that had their lines cut on the first and second days have paid and reconnected today, the Limited reported. Nevertheless, lines remain disconnected for 68 industries.

“The dispute concerns land rent; we have consistently paid water and electricity charges on time. We are willing to pay as per the court’s decision, but instead of listening to us, the Management Limited is acting like thugs,” an industry representative said.

The Management Limited, however, claims that only those who have not paid as per the Supreme Court ruling have had their lines disconnected. The Limited stated that it collected NPR 31,867,493.73 in dues today alone. A total of NPR 3,204,627,715.61 has been collected so far.

The line disconnections began as the Limited took action against industries in 10 industrial areas (Balaju, Patan, Bhaktapur, Hetauda, Pokhara, Butwal, Nepalgunj, Dharan, Birendranagar, and Gajendranarayan Singh) that had long-standing unpaid rent.