. CE Construction Pvt. Ltd., a well-known company in the construction and real estate sector with a history of more than three decades, seems to be in serious financial crisis. The company, which has expanded in the construction business, housing, real estate and hydropower sectors, is now under pressure due to debt pressure, cash flow problems, employee dissatisfaction and customer disputes.

According to sources, the loans of banks and financial institutions worth about Rs 4 billion related to the company are at risk.TAG_OPEN_p_52 The company’s financial position is deteriorating in recent years due to the slowdown in real estate transactions, sluggishness in the construction sector and lack of expected cash flow from projects.

Established in 1992, CE Construction has been constructing residential, commercial and infrastructure projects in various parts of the country, including the Kathmandu Valley.TAG_OPEN_p_51 At one time, the company expanded its business with the rapid expansion of the real estate market, but now the slowdown in the market seems to have a direct impact on the company.

Allegations of collecting employee money{

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TAG_OPEN_p_50 Even the employees have made serious allegations against the company. According to the aggrieved employees, the company’s directors had collected Rs 5 lakh to Rs 15 lakh from the employees promising to provide promoter shares in various projects.

} Employees claim that although they have invested in projects including ‘Mewa Developers’, neither shares have been provided so far nor the investment amount has been returned. According to them, they have invested their own and family’s savings in the belief that the company’s financial position is strong, but now they are in big financial trouble as they have not been able to get the money back.

Employees have also accused the company’s directors of using millions of rupees collected for other purposes.

Problem in payment of salary, complaint in Labour Court

The company has been accused of failing to pay the regular salaries of its employees for a long time. The aggrieved employees have already filed a complaint at the Labour Court in this regard.

According to one employee, dozens of complaints have been received against the company.TAG_OPEN_p_46 However, the employees are worried that it will take time to get justice as the labour court process is lengthy.

More than TAG_OPEN_h3_33 53 crore VAT arrears

The Inland Revenue Department (IRD) has asked CE Construction to pay Rs 53,TAG_OPEN_p_45 16,75,000 in VAT and the interest charged on it, according to sources. The arrears were valid till mid-January 2080.

Tax arrears, allegations of misappropriation of employee funds and disputes with customers have raised more questions about the company.

Elephant housing dispute erupted

The Hattiban housing project is one of the most talked-about controversies related to CE Construction.TAG_OPEN_p_43 Buyers who have already paid for their houses under the project have complained that they have not received the ownership certificates and transfer of ownership certificates.

According to the victims, the houses and land they bought were mortgaged in more than one bank.TAG_OPEN_p_42 They are even more worried after the bank auctioned the house in case the house was to be passed in their name.

The complainants have claimed that the company has taken loans from the bank with double mortgage and they have been cheated by it. They say that if the banks go ahead with the auction process, there is a risk of losing the house they have bought with years of savings.

Eight government bodies

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According to sources, the Office of the Prime Minister and Council of Ministers (Hello Sarkar), the Ministry of Finance, the Ministry of Home Affairs, the Commission for the Investigation of Abuse of Authority, Nepal Rastra Bank, the Inland Revenue Department, the Police Headquarters and the Central Investigation Bureau (CIB) have filed a complaint against CE Construction and its operators.TAG_OPEN_p_40

The complaints include tax evasion, financial irregularities, misuse of the banking system, customer fraud and embezzlement of employees.TAG_OPEN_p_39

Increasing risk in the construction sector

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According to banking sector officials, the construction and real estate sectors are now one of the major sectors for increasing non-performing loans (NPLs).TAG_OPEN_p_38 Banks and financial institutions that have invested in this sector are also under pressure due to the slowdown in real estate transactions, delay in construction projects and weak demand in the market.

CE Construction, which has expanded into the construction business, real estate, housing, apartments and hydropower, was once one of the established construction companies in Nepal.TAG_OPEN_p_37 But the company’s future is being questioned due to mounting debt burden, tax arrears, employee dissatisfaction and customer disputes.