Politicians and cronies blamed for Kavre floods

Uncovering the hidden owners of mining companies that made September’s floods more deadly

Photos: ARCHANA DARJI AND SHAMSHAD AHMAD

Rajesh Humagain lives by the Rosi River in Panauti, directly downstream from a quarry company. His was one of many houses swept away by the deadly mudflow on 28 September.

The flash flood last month was not the first time stone mining has caused problems for Humagain and other residents of this village 40km east of Kathmandu. They have protested unregulated quarrying and sand mining on the river that has caused sedimentation and springs going dry downstream. 

“When it rained, the debris that had piled up in the quarries was swept down in a wall of mud that took away my house and everything I own,” says Humagain, who now rents a single room in Panauti town.

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Before the flood, boulders would fall on houses below, and dust clouds from the crushers that produced aggregates to feed Kathmandu’s construction would shroud the village. The air would be thickly polluted in an otherwise pristine valley.

“The rain was very heavy, but these mines and crushers made the destruction much more serious,” Humagain says, while his neighbours nod in agreement.

The quarry is owned by Bhaleswar Roda Dhunga Udyog and its directors Rabi Shrestha and Ramhari KC. It started operating in 2022, and because it provides locals with employment many people we approached were reluctant to talk.

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Tipper trucks owned by crusher companies were swept away along with homes, roads and bridges along the Rosi.

Humagain himself was a tripper operator for a decade at Diamond Roda Dhunga Udhyog, another crusher company nearby. He ferried aggregates to Kathmandu every night. Now, most of the quarry has been swept away, and all that is left are overturned trucks, earth-movers and equipment scattered about.

A mudslide also destroyed Rajesh Khatri’s house and shop near the quarry, and his family is now a refugee in the town. “The mines and the crushers are entirely responsible for our plight,” he tells us, looking over his shoulder to see if anyone is within earshot.

The flood swept away 500 houses and killed 20 people in Panauti Municipality alone. Farmers lost 2,000 livestock, and paddy ready for harvest was destroyed. Downstream along the Rosi, dozens more were killed. Across central Nepal, nearly 200 people were killed.

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The Rosi River had also flooded in 1981, but there had not been nearly as much damage and the river’s course did not change. Last month, the river flowed through towns and streets. 

In the village of Bhaleswar, the river now flows through a gaping hole in Kumar Tamang’s house, cutting through what used to be his farm. “We have been living by the Rosi for generations, but never once had the river ever caused us such grief,” says Tamang, looking forlornly at an overturned tanker truck that washed up on what used to be his doorstep from a stone quarry upstream.

Section 11 of Nepal’s Standards Related to the Sale and Management of Stone, Gravel, and Sand Excavation 2020 states that crusher companies must operate at a distance of 2km from residential areas.

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Quarries along the Rosi River in Khusadevi.

It is clear from this trip that the law has been openly flouted, which would not be possible without collusion of local government. The mountains above Ramesh Khatri’s house have been gouged out by bulldozers, and rocks used to fall on his house frequently. “And the constant noise from the crushing equipment was unbearable,” he said. 

When the village became unliveable, Khatri’s family—like many others in his village of Kharkhola—sold the land to the quarry company for Rs6 million. But that was just on paper. The company agreed to pay the money within a year, but so far Khatri has only received a Rs1.6 million advance. 

“They have taken away our land documents and used them to obtain bank loans to operate their mines and crushers, but are not paying us,” says Khatri. “What’s more, the owners are not even from here. We have not received the money, and the flood has made us homeless.”

Politicians and cronies blamed for Kavre floods NT
Politicians and cronies blamed for Kavre floods NT
Politicians and cronies blamed for Kavre floods NT
Government documents bearing the names of the owners of the quarries in Rosi and Panauti.

The Khatri and Humagain families have been complaining about the unregulated mines for the last two decades, but no one has listened. Says another Bhaleswar resident Dinesh Gurung: “The mining companies are owned by powerful people so our problems and pleas have fallen on deaf ears.”

Section 11 of the guidelines also stipulates that highways must be given a right of way of 500m from quarries. But the Nangsal Dhunga Roda Udyog had damaged the BP Highway even before the floods and was documented two years ago by the Kavre District Coordination Committee.

The report blames the industry for not following directives to reduce  dust and debris produced by its quarry and crushers, as well as to level the ground after excavation. 

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Nangsal was registered at the Kavre Office of Cottage and Small Industries in 2009 and after federalism also registered with the Kavre District Coordination Committee to operate a crusher unit.

Documents from the Cottage and Small Industries office show that two of the company’s directors are Bagmati Province Minister for Water Supply, Energy and Irrigation Tirtha Bahadur Lama from the governing Nepali Congress (NC) and Grande International Hospital Chair Deepak Kunwar. The third director is Sujan Lama. Grande Hospital Chair Deepak Kunwar is also a shareholder of SM Baluwa Dhunga Udyog which has been operating since 2015. Kunwar joined company directors Maheshwar Gautam and Sulabh Karki as a shareholder in 2021.

The NC’s Ganesh Lama, who has a fearsome reputation here, is also the owner of Om Satya Sai Stone Crusher Udyog on the banks of the Rosi near the densely populated village of Kutunge right off the BP Highway that connects Kathmandu to eastern Nepal.

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(Clockwise) Bagmati Province Water Supply Minister Tirtha Bahadur Lama, Bagmati Province Health Minister Kiran Thapa Magar, NC leader Ganesh Lama, and Grande International Hospital Chair Deepak Kunwar are among those who own mining and crusher companies in Kavre.

Lama’s company is only licensed to operate a crusher, but has also been sand mining without a permit. Debris and other waste material produced by the crushers and the mine were piled high by the river when the floods came. 

Bagmati Province Health Minister Kiran Thapa along with Sur Krishna Vaidya and Govardhan Shrestha are owners of another company, the Kaldhunga Aggregate in Kaldhunga village. Thapa has since sold his shares to Rabi Shrestha, but an official change of ownership has not been registered, and documents still list Thapa as a director.

Thapa told us he had sold his shares and the quarrying had been going on in an unregulated manner. He said: “As Health Minister, I myself inspected the Rosi damage after the flood, and saw the destruction. The local government has been awarding contracts purely to increase its tax revenue without any monitoring. But the damage from the flood is far more than the revenue will ever be.”

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Former Ward Chair Pravin Lama of Kavre’s Temal Rural Municipality owns three mining and crusher companies with various partners in Rosi Rural Municipality. His Gauri Shankar Roda Dhunga Udyog, Jay Nepal Suppliers, and Mangal Roda Dhunga Udyog have all been found to be operating in violation of mining and excavating guidelines.

They don’t have proper permits from the rural municipality, and financial or other relevant details of these companies have not been made available to local governments. Excavation debris was just dumped along the Rosi banks, and Mangal Roda Dhunga Udyog was found to have exceeded its permitted volume. 

In total, there are 46 stone quarries and crushers on the banks of the Rosi in Panauti and Rosi Municipalities. All had been found to have violated existing mining guidelines and laws even before the floods last month.

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A monitoring report by the Kavre District Coordination Committee two years ago had concluded that quarries and crushers did not have proper permits and did not fully comply with the laws, resulting in over-mining.

The report stated that waste material from the mines had been poorly managed, excavation areas had not been mapped and relevant registration and accounting documents of operational mines and quarries were nowhere to be found.

The monitoring committee subsequently recommended that the local government close down unlicensed mines that had been operating on public and private land without permit. But the municipality did not heed the directive, nor did other government agencies. Impunity is rife, and mine and quarry operators openly admit to violating standards. Most are said to have powerful protectors in local wards, municipalities and provincial councils.

One crusher operator told us: “Most of the mines and quarries here have been running like this even after their licences expired. It is just the way it is done here and everywhere. The local government is letting this happen because they only care about the revenue.”