CITY GOVERNANCE
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Kathmandu Mayor Balendra Shah Scandal: Documented Actions, Audits, and Cases

Comprehensive investigation into Kathmandu Mayor Balendra Shah's tenure: Rs 121.5m AG objections, Rs 10m lift scandal, CIAA complaints, and financial irregularities at Kathmandu Metropolitan City.

Kathmandu Mayor Balendra Shah Scandal: Documented Actions, Audits, and Cases

Executive Summary

This summary presents documented actions and records relating to Kathmandu Metropolitan City during Mayor Balendra Shah's tenure. Each item is categorized by evidence level: Auditor General objection, complaint filed, court order, official data, or estimate.

Key facts at a glance

  • Audit objection: Rs 121.5m in grants to foundations; some recipients lacked approved building maps (AG FY 2080/81).
  • Complaint filed: Lift procurement (~Rs 10m) reported to CIAA; outcome pending.
  • Court interventions: Patan HC on Adipurush screenings; SC stay regarding Norvic; HC orders on Tukucha corridor.
  • Budget: FY 2025/26 announced at Rs 25.76b; execution/absorption concerns reported.
  • Footpaths program: 32,851 m² planned; 10,729 m² completed by 2025-02-19; work concentrated in inner wards.
  • Waste: No record of a commissioned KMC-run incinerator as of 2025-09-21.
  • Public protest action: 2024-05-25 KMC dumped dirt at Road Division gate amid jurisdiction dispute.
  • Transparency gaps: ward-wise spend ledgers and cost/KPI disclosures for hoarding/excavation not published on KMC portals reviewed.

1. Items with documentary backing (what the records show)

Lift procurement complaint — ~Rs 10 million

Status: Complaint filed; outcome pending
A complaint alleging irregularities in a ~Rs 10 million lift purchase for KMC was filed with the Commission for the Investigation of Abuse of Authority (CIAA). Public reports describe alleged procedure bypass; adjudication is pending.

Sources: Nepal News, My Republica

Grants Without Approved Maps - Rs. 121.5 Million

Status: Auditor General objection (not a conviction)
The Office of the Auditor General flagged Rs 121.5 million in grants to foundations, noting some recipients lacked approved building maps and recommending action.

Sources: My Republica, Auditor General's Office

2. Audit Objections (Not Convictions)

Kathmandu Tower Approval Controversy

Key Development: Mayor Balen Shah initially approved the Kathmandu Tower project on 2023-12-20, with KMC fining and approving a revised map. However, he later vetoed the project and sought to halt construction work. The Patan High Court subsequently issued an interim order allowing construction to continue, creating a legal dispute over the approval process.

Timeline: Initial Approval (Dec 2023) → Later Veto → Court Intervention → Ongoing Litigation

Sources: My Republica, Desh Sanchar

Foreign Travel Objections (Cannes)

Audit queries were raised regarding the 2024 Cannes travel. Media reports note objections and inquiries; primary documentation has been requested and will be added when released.

3. Complaints/Allegations (Filed; Outcome Pending)

CIAA Complaint - Financial Irregularities

A formal complaint has been filed with the CIAA against Mayor Shah over financial irregularities. The complaint alleges misuse of public funds and violation of financial procedures.

Sources: My Republica

4. Timeline (2022-2025)

May 30, 2022

Shah sworn in as Kathmandu Mayor.

July 2022

KMC announces citywide waste segregation.

October 31, 2023

Kathmandu designated a UNESCO Creative City of Film.

May 25, 2024

KMC dumps a truckload of dirt at the Road Division gate during a jurisdiction dispute.

August 7, 2025

Patan High Court quashes KMC's decision to scrap the valley waste agreement with Nepwaste.

5. Delivery vs Manifesto

5.1 Traceability Matrix

Promise KPI (how measured) Target Current/Outcome (date) Status Evidence Data Status
KMC-run incinerator Commissioned (Y/N); capacity t/day; commissioning date Y; ≥300 t/day N; 0 t/day (2025-09-21) Not delivered E5 Audited
Waste segregation citywide % households segregating at source ≥70% Orders issued; compliance low/uneven (2025-09-21) Partial E5 Gap (no % published)
Landfill mitigation (odor/leachate, night-only) Systems installed; blockade days/year All installed; 0 days Repeated blockades; mitigations under-implemented (2023–25) Not delivered E5 Partial records
Footpaths citywide m² completed / m² planned; % completion by ward 32,851 m²; 100% 10,729/32,851 m²; 32.7% (2025-02-19) Partial E3 Official
Public toilets in all wards # wards with functional public toilets 32/32 Unknown; scattered installs (2025-09-21) Not delivered Gap Gap
GPS in public transport % public vehicles tracked ≥80% No citywide rollout verified (2025-09-21) Not delivered Gap Gap
CCTV in public vehicles % public vehicles with CCTV ≥80% No citywide rollout verified (2025-09-21) Not delivered Gap Gap
Free home checkups (70+) # beneficiaries; ward coverage All wards; rising trend Not launched; different free-beds scheme instead (2024–25) Not delivered (as pledged) Health exhibits Official (for beds)
Ambulance via KMC call center Central dispatch live; SLA compliance Live; ≥90% SLA No operational citywide system verified Not delivered Gap Gap
Revive stone spouts (hiti) # sources restored and flowing Program target set; ≥X/year Limited pilots; not citywide Partial Gap Gap
One house, one tree % households planted ≥80% No citywide data Not delivered Gap Gap
Idea bank (jobs/enterprise) Platform live; # projects funded/placements Live; ≥X/quarter No functioning program verified Not delivered Gap Gap
School upgrades (quality/technical) # schools upgraded; outcome metrics Annual target met Some efforts; scale unverified Partial Gap Gap

5.2 Roll-up

  • Delivered: 0
  • Partial: 5
  • Not delivered:8

Legend: Delivered=KPI met; Partial=some action without KPI met citywide; Not delivered=no verifiable

5.3 High-leverage gaps

  • No ward-wise schedules, KPIs, or completion ledgers.
  • Low budget absorption and staggered contracting.
  • Legal/jurisdiction disputes consuming cycles.
  • Performative operations without cost/KPI disclosure.

6. Waste Management (Core Pledge)

6.1 Incinerator Status

Despite being a core campaign promise, the waste management system has faced numerous challenges. The incinerator project has been mired in controversy, with questions about its environmental impact and cost-effectiveness.

6.2 Segregation and Operations

While some progress has been made in waste segregation, the overall system remains inefficient. The city has struggled with proper waste collection and disposal, leading to environmental and health concerns.

6.3 Landfill Agreements, Blockades, Compensation

Landfill agreements have been controversial, with local communities blocking waste disposal sites. The city has had to pay significant compensation to affected communities, raising questions about the planning and execution of waste management policies.

7. Money: Allocation, Spend, and Efficiency

7.1 Budget Overview

Kathmandu Metropolitan City unveiled a Rs. 25.76 billion budget for the upcoming fiscal year, but questions remain about fund allocation and utilization efficiency. The budget process has been criticized for lack of transparency and proper oversight mechanisms.

7.2 Sector Highlights

Analysis of budget allocation reveals disproportionate spending on aesthetic projects over essential services. While significant funds have been allocated to beautification projects, core infrastructure and public services have been neglected.

7.3 Absorption/Utilization

Budget absorption rates have been poor, with many allocated funds remaining unutilized. This suggests either poor planning or deliberate misallocation of resources for political purposes.

Evidence Base

Documented Proof

Proven Evidence (Documents or Multiple Reputable Reports)

  • • CIAA complaint documents
  • • Auditor General audit reports
  • • Procurement records and contracts
  • • Financial statements and budget allocations

Complaints/Allegations (Filed; Outcome Pending)

  • • Rs 10 million lift procurement complaint
  • • Financial irregularities complaint (CIAA)
  • • Multiple audit objections
  • • Court orders and legal challenges

Impact and Consequences

Rs 121.5m
Grants under AG objection
1
CIAA complaint reported
3
Major court interventions cited

Conclusion

This article compiles records: audit objections, court orders, official budgets, program updates, and a filed complaint. Allegations remain subject to determination by competent authorities.

Key gaps are transparency and execution detail: ward-wise ledgers, cost/KPI disclosures for enforcement drives, and complete utilization data. Publishing these would allow clearer public evaluation.

Sources and References

Official Documents

  • • Commission for Investigation of Abuse of Authority (CIAA) official complaints
  • • Auditor General's Office reports and objections
  • • Court documents and legal proceedings
  • • Municipal budget and procurement records
  • • Public records and RTI responses

Media Sources

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