Kathmandu – The Gen-Z movement in Nepal has escalated into violent demonstrations, crossing all limits of destruction. Protesters have set fire to major industrial establishments, business houses, and even private residences of prominent business families. What started as agitation against government corruption and social media bans has turned into systematic attacks on the private sector. The situation grew so serious that the army had to take charge of security. Although no active protests are taking place at the moment, the Nepal business attacks protest has already raised serious concerns about investment climate, economic stability, and the safety of business operations across the country. Analysts warn that the Nepal business attacks protest could leave long-term scars on the nation’s economic confidence if the violence is not contained swiftly.

Protest Overview and Business Impact

The Nepal business attacks protest intensified on September 9, 2024, when demonstrators began targeting specific business establishments owned by prominent industrialists. Unlike typical protests that focus on government institutions, these demonstrations have deliberately targeted private sector investments, creating unprecedented challenges for Nepal’s business community.

 

The coordinated nature of these attacks has raised questions about whether the targeting was planned or spontaneous, as protesters appeared to have detailed knowledge of business owners’ properties and locations. The scale of damage suggests organized efforts rather than random vandalism.

Key Targeted Sectors

• Telecommunications: Major service providers faced infrastructure damage
• Retail Chains: Supermarket networks experienced widespread vandalism
• Automotive Industry: Vehicle showrooms and manufacturing facilities attacked
• Tourism Sector: Cable car operations and hospitality businesses targeted
• Electronics Retail: Consumer goods stores faced extensive looting

According to the Nepal Chamber of Commerce, such systematic targeting of private businesses during civil unrest is unprecedented in Nepal’s modern history.

Chaudhary Group Suffers Major Losses

Billionaire parliamentarian Binod Chaudhary’s business empire bore the brunt of the Nepal business attacks protest, with multiple properties across different sectors facing severe damage. The Chaudhary Group, Nepal’s largest conglomerate, experienced coordinated attacks on various facilities.

Extensive Damage to Chaudhary Properties

 

CG Electronics Park in Satungal was completely destroyed, with the entire facility reduced to rubble. The state-of-the-art electronics retail center, which employed hundreds of workers, now lies in ruins following the systematic arson attack.

CG Park in Bhairahawa also faced significant vandalism, with protesters targeting the commercial complex that serves as a major retail hub for the region. The facility’s destruction impacts not only the company but also numerous small businesses operating within the complex.

Chaudhary’s Private Residence in Kathmandu was pelted with stones and faced attempted break-ins, though family members remained safe during the incident. The attack on personal property marks an escalation from business-focused protests to personal targeting.

Automotive Sector Devastation

The CG Auto Park in Thapathali experienced extensive arson and vandalism, with luxury vehicles worth millions destroyed. The facility housed multiple automotive brands and served as a major employment center for the automotive sector.

CG Motors showrooms across the valley were reduced to skeletal remains, with expensive vehicles becoming casualties of the coordinated attacks. The automotive division’s losses alone are estimated to run into hundreds of millions of rupees.

Dhakal Enterprises and Cable Car Vandalism

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, saw his major investments targeted in the Nepal business attacks protest. The attacks on Dhakal’s enterprises particularly focused on tourism infrastructure.

Cable Car Operations Under Attack

Chandragiri Cable Car facilities faced significant vandalism, with the bottom station suffering extensive damage. The popular tourist destination, which provides panoramic views of the Himalayas, now faces indefinite closure due to infrastructure damage.

Maulakalika Cable Car operations were similarly targeted, with protesters setting fire to station facilities and damaging crucial mechanical equipment. These attacks directly impact Nepal’s tourism sector, which is still recovering from pandemic-related losses.

Dhakal attributed the attacks to misinformation campaigns, stating that social media platforms had spread false narratives about business leaders’ roles in government policies. The Nepal Tourism Board expressed concern about the long-term impact on tourist confidence.

Golchha Family Properties Attacked

Shekhar Golchha’s residential properties faced direct attacks during the Nepal business attacks protest, though family members remained safe throughout the incidents. The targeting of residential properties represents a concerning escalation in protest tactics.

Bhatbhateni Superstore Chain Devastation

Multiple Bhatbhateni outlets across Kathmandu valley experienced systematic looting and arson attacks:

• Naxal Branch: Complete destruction with merchandise worth millions looted
• Koteshwor Outlet: Fire damage that remained uncontrolled for hours
• Bhaktapur Radheradhe: Extensive vandalism and inventory theft

The Bhatbhateni chain, founded by Min Bahadur Gurung, represents one of Nepal’s retail success stories. The systematic targeting of multiple outlets suggests coordinated efforts to maximize economic impact.

Kalimati Outlet Heroic Defense

The Kalimati Bhatbhateni outlet survived the attacks due to exceptional efforts by staff members. Security guard Sheela Upreti reportedly confronted protesters seven times throughout the night, successfully preventing major damage through persistent negotiation and appeals.

“We stopped the protesters seven times, sometimes bringing those who entered inside back out with folded hands. One group would come, we’d convince them to leave, then another group would arrive immediately,” Upreti recounted her harrowing experience during the overnight siege.

Ncell Headquarters and Telecommunications Impact

The Nepal business attacks protest significantly impacted telecommunications infrastructure, with Ncell’s headquarters facing extensive damage. The multinational telecom provider’s central office suffered arson attacks affecting three to four floors of the building.

Infrastructure Damage Assessment

The telecommunications sector damage includes:

• Central Office Facilities: Multi-floor fire damage at headquarters
• Equipment Destruction: Critical networking infrastructure compromised
• Service Disruption: Potential long-term connectivity issues for customers
• Employee Safety: Staff evacuations and workplace security concerns

International telecommunications companies operating in Nepal are reassessing security protocols following these targeted attacks on critical infrastructure.

Hotel and Hospitality Sector Impact

The controversial Hilton Hotel in Naxal remained under fire control efforts, with flames continuing to threaten the facility. Local residents expressed fears about the fire spreading to surrounding properties, highlighting the broader community impact of the targeted attacks.

Hospitality sector losses extend beyond property damage to include:

• Tourism Image Damage: International perception of Nepal’s stability
• Employment Impact: Hundreds of hospitality workers facing job uncertainty
• Investment Confidence: Foreign hotel chains reconsidering expansion plans

Economic Implications for Nepal

The systematic nature of the Nepal business attacks protest raises serious questions about Nepal’s investment climate and economic future. The targeted destruction of major business establishments sends concerning signals to both domestic and foreign investors.

Investment Climate Concerns

Domestic Investment Impact:

• Major industrialists may reconsider expansion plans within Nepal
• Small and medium enterprises fear similar targeting in future protests
• Business confidence severely undermined by property destruction
• Insurance costs likely to increase significantly across sectors

Foreign Investment Implications:

• International companies may delay planned investments
• Existing foreign businesses reassessing security requirements
• Development partners concerned about project implementation
• Credit rating agencies monitoring political stability indicators

According to Nepal Rastra Bank data, political instability and property destruction significantly impact foreign direct investment flows, which Nepal desperately needs for economic development.

Employment and Economic Multiplier Effects

The destruction of major business establishments creates cascading economic impacts:

Direct Employment Losses:

• Thousands of jobs at risk in destroyed facilities
• Service sector employment dependent on these businesses
• Supply chain disruptions affecting multiple industries
• Reduced consumer spending due to income uncertainty

Indirect Economic Impact:

• Reduced tax revenue from damaged businesses
• Increased public spending on security and reconstruction
• Higher insurance premiums across all sectors
• Decreased investor confidence affecting capital markets

Government Response and Security Measures

The government’s response to the Nepal business attacks protest has involved deploying army and police forces to control fires and restore order. However, questions remain about the effectiveness of security measures in protecting private property during civil unrest.

Security Protocol Failures

The systematic targeting of specific businesses suggests intelligence gaps in protest monitoring and prevention. Security agencies appeared unprepared for the coordinated nature of attacks on private establishments.

Areas Requiring Improvement:

• Enhanced intelligence gathering on protest planning
• Better coordination between security agencies
• Improved protection protocols for critical infrastructure
• Rapid response capabilities for property protection

Legal and Judicial Response

The targeting of private businesses during protests raises important legal questions about:

• Property Rights Protection: Constitutional guarantees versus protest rights
• Compensation Mechanisms: Government responsibility for riot damage
• Legal Accountability: Prosecution of property destruction crimes
• Insurance Coverage: Adequacy of existing policies for civil unrest

International Business Community Reaction

The Nepal business attacks protest has drawn attention from international business communities and diplomatic missions. The systematic targeting of major businesses sends concerning signals about Nepal’s stability as an investment destination.

Diplomatic Concerns

Several embassies have expressed concern about:

• Citizen Safety: Protection of foreign nationals and their properties
• Investment Security: Safety of existing foreign business operations
• Rule of Law: Government capacity to protect private property rights
• Business Environment: Overall climate for international business operations

Reconstruction and Recovery Challenges

The extensive damage from the Nepal business attacks protest presents significant reconstruction challenges for affected businesses. The scale of destruction requires substantial investment and time for complete recovery.

Recovery Timeline Estimates

Short-term Recovery (1-3 months):

• Basic infrastructure restoration for critical services
• Emergency employment support for displaced workers
• Temporary business operations in alternative locations
• Initial insurance claim processing and assessment

Medium-term Recovery (3-12 months):

• Complete reconstruction of major facilities
• Equipment replacement and technology upgrades
• Staff rehiring and training programs
• Market confidence restoration efforts

Long-term Recovery (1-3 years):

• Full operational capacity restoration
• Investment in enhanced security measures
• Expansion plans reconsideration and adjustment
• Comprehensive risk management protocol implementation

Lessons for Nepal’s Democratic Development

The Nepal business attacks protest highlights critical challenges in balancing democratic expression with economic stability. The targeting of private businesses during political protests raises questions about the boundaries of legitimate democratic dissent.

Democratic Institutions and Economic Rights

Key Considerations:

• Protest Rights vs. Property Rights: Balancing constitutional freedoms
• Political Expression: Appropriate channels for economic grievances
• Government Accountability: Protecting all citizens’ constitutional rights
• Social Contract: Responsibilities of both protesters and property owners

The Nepal business attacks protest represents a concerning escalation in civil unrest tactics, with systematic targeting of major business establishments undermining economic confidence and stability. The attacks on Chaudhary Group, Dhakal enterprises, Golchha properties, and other major businesses signal a troubling trend toward personalizing political grievances.

As Nepal grapples with forming a new government, the business community’s confidence has been severely shaken by these targeted attacks. The destruction of major employment centers and investment hubs creates long-term challenges for economic recovery and development.

The international community watches closely as Nepal navigates this crisis, with the country’s ability to protect private property rights and maintain investment-friendly policies under scrutiny. The systematic nature of business targeting during protests sets dangerous precedents that could impact Nepal’s economic future for years to come.

Recovery efforts must address not only physical reconstruction but also the restoration of confidence in Nepal’s democratic institutions and commitment to protecting all citizens’ constitutional rights, including property rights and economic freedom.