Kathmandu: The Kathmandu District Court has issued arrest warrants against 20 individuals, including the then president of Nepal Children’s Organization (Bal Mandir) Rita Singh Baidya, on the charge of causing financial loss to the charitable organization by illegally leasing its land in Naxal, Kathmandu for 79 years at a throw-away price.

The court issued the arrest warrant on Thursday upon the request of the Central Investigation Bureau (CIB) of the Nepal Police, which is investigating the matter.

Baidya is the elder sister of Nepali Congress leader Prakashman Singh. She was the president of the children's organization from 2047 BS to 2077 BS.

Baidhya, along with other officials of the child welfare organization have been accused of leasing the land of Bal Mandir to Vishal Group, a commercial organisation, in a way that would cause loss to the organization. Vishal Group is running a school named Brihaspati Vidya Sadan on that land of Bal Mandir.

The court has also issued arrest warrants against the school's principal, board members and shareholders.

CIB Spokesperson Superintendent of Police (SP) Hobindra Bogti confirmed that the district court has issued arrest warrants to investigate alleged irregularities carried out by the accused including Baidhya, who was the president of the children's organization for about 27 years.

"An investigation has been started against the accused on charges of fraud after a complaint was registered," SP Bogti told New Business Age.

The children's organization filed a complaint with the CIB on April 26 alleging that the contract with Brihaspati Vidya Sadan was illegal and demanded action against those involved. SP Bogti said that the CIB has started an investigation based on the same complaint.

Bal Mandir’s President Bidya Neupane accused the ex-officials of the welfare organisation of signing an agreement with Brihaspati Vidya Sadan to lease the land at a low price of Rs 900,000 per month effective until 2132 BS.

Neupane accused that the ex-officials of Bal Mandir made financial gains in collusion with Brihaspati Vidya Sadan and business houses when they leased 29 ropanis and 5 annas of land owned by the children's organization.

She said that the board meeting of the children's organization held on April 26 also decided to cancel the dubious contract.

Brihaspati Vidya Sadan signed the agreement with Bal Mandir and acquired the land and again gave it to Rai School on 'sub-lease'.

According to the officers involved in the investigation, Nepal Children's Organization and Brihaspati Vidya Sadan signed the lease agreement on 2049 BS and then decided to set new rates in 2053 BS, 2058 BS, 2059 BS and 2072 BS.

In 2072 BS, the then president of Bal Mandir Rita Singh Baidhya was found to have signed a new agreement to extend the lease with the old agreement still in force. Neupane, the incumbent president of Bal Mandir, said that 17 years were still left in the old agreement when the new agreement was signed to extend the lease for another 43 years.

"It seems that an agreement has been reached for 79 years until 2132 BS," Neupane told New Business Age.

The current leadership of Bal Mandir has alleged that Rita Singh, the then president of Nepal Children's Organization, and Purushottam Raj Joshi of Brihaspati Vidya Sadan, entered into a supplementary agreement in 2072 BS.

The Government of Nepal had provided 119 ropanis of land to Bal Mandir in 2021 BS after acquiring 'Sita Bhavan' in Naxal from the queen of then Rana Prime Minister Bhim Shumsher.