Balen Shah alleges major corruption in Kathmandu Tower Project
In a detailed Facebook post this afternoon, Shah claimed that the project, from its building permit process to structural changes, is riddled with illegalities.

KATHMANDU: Kathmandu Metropolitan City Mayor Balendra Shah has accused the ongoing construction of a commercial complex at Purano Bus Park—popularly known as Kathmandu Tower—of serious irregularities and policy-level corruption.
In a detailed Facebook post this afternoon, Shah claimed that the project, from its building permit process to structural changes, is riddled with illegalities.
He warned that the Metropolitan City could suffer a financial loss exceeding Rs 1 billion, while the contractors stand to gain billions. Shah suggested that this may be the result of collusion between government officials, elected representatives, and the contractor.
He stated that environmental, social, and economic impact assessments were deliberately ignored during the building’s approval process, which he described as illegal.
Shah alleged serious flaws in the tower’s architectural approval, claiming that it led to policy-driven corruption aimed at benefiting a select few at the expense of the city’s welfare.
He highlighted that on Asar 22, 2072 BS, the Kathmandu Valley Development Authority had approved the project with a maximum limit of 2.41 FAR (Floor Area Ratio), allowing construction of up to 12 floors only.
However, the tower was later expanded to 19 floors without obtaining the necessary revised planning permits.
“Wasn’t it mandatory to acquire a new planning permit before increasing the number of floors? Shouldn’t environmental, social, and economic impact assessments be conducted when adding additional floors?” Shah questioned.
He further stated that the construction process has been marred by negligence, coercion, and illegal practices—raising concerns not only about violations of legal procedures but also the increased safety risks posed by the building.