. The government has taken action against Shanker Group, a big business house in terms of transactions and loans of banks and financial institutions.

Shankar Group Chairman Shankar Agrawal and his sons Sulav Agarwal and Sahil Agrawal have been taken into custody in connection with a money laundering case.TAG_OPEN_p_24 The group’s business partner Deepak Bhatta is also in police custody in connection with the case.

{{TAG_OPEN_p_23} After the key members of the group were arrested by the police, there has been a serious discussion among the bankers about the loans taken by the group-affiliated companies from the bank and its impact on the stability of the banking sector.

} “Among the business houses in Nepal, the Shankar Group has taken the highest loan of about one trillion rupees,” said the CEO of a bank that has lent money to the group-affiliated companies. ’

Jagdamba Steel is the company that has taken the most loan by the group.TAG_OPEN_p_21 According to credit rating company Infomatic, the loan amount of Jagdamba Steel is Rs 33.15 billion. The industry, which once had a turnover of up to Rs 50 billion, has slowed down to Rs 30 billion in recent years due to the slowdown in the construction sector.

Apart from Jagadamba Steel, the group also has huge loans in Reliance Cement, Shaurya Cement, Jagdamba Automobiles and Hilton Hotel.TAG_OPEN_p_20 In total, about one billion loans are being used by group-affiliated companies.

{{TAG_OPEN_p_19} The 5-star Hilton Hotel being constructed in Naxal was damaged during the Jenji agitation. Banks have provided a loan of around Rs 5 billion for this project. The hotel project has been thrown into more uncertainty due to the dispute over the payment of insurance claims.

Business empire that started from Myanmar

}

Shankar Group’s business journey started from Myanmar. Rawatmal Golyan established the bottom industry in the 1960s. Later, he came to Nepal and started a business, but after not getting success, he turned to trading.

His son, Shankarlal Agrawal, founded the Shankar Group in the 1980s, following his father’s legacy.TAG_OPEN_p_16 The initial business was focused on trading. Currently, there are more than 40 companies under the group.

Shankarlal gradually turned his success in trading into industry and established Jagdamba Steel in 1994 and Jagdamba Cement in 2001. Shankar Group is considered a pioneer in the cement and rod industry in Nepal.

After Shankarlal’s sons Sahil and Sulabh Agarwal became active in the business, the group seems to be moving aggressively in the trading sector again.TAG_OPEN_p_14 The company’s market presence was further strengthened after the group became the authorized distributor of TVS motorcycles in Nepal. Currently, assembly of TVS motorcycles and scooters is being done in Nepal. The company is also a distributor of Proton vehicles in Nepal.

In addition, the group has invested heavily in Riddhisiddhi Cement (Hetauda), Shaurya Cement (Udayapur), Hilton Hotel (Naxal), various hydropower projects, Union Life in life insurance, Himalayan Re-Insurance, Micro Insurance TAG_CLOSE_p_13 etc.TAG_OPEN_p_13