Case against chef Santosh Shah linked to restaurant deal, loan and cheque dispute

Celebrity chef Santosh Shah has been released on bail after his arrest in a banking offense case. The charges stem from a restaurant deal involving his company, Mithila Thali, and Shila Restaurant. Police arrested Shah in Janakpur on fraud allegations and brought him to Kathmandu.

The dispute centers on the purchase of Shila Restaurant for 22.5 million Nepalese rupees. Mithila Thali agreed to pay an advance, settle rent dues, and assume a 13.58 million rupee bank loan owed to Nepal Bank Limited. The company also agreed to make further payments for the remaining purchase amount.

However, the seller, Aarjab Holdings Pvt Ltd, claims Mithila Thali failed to clear the bank loan. This led to the bank issuing pre-default and final notices, causing severe financial stress to Aarjab Holdings. The company states they had to make loan installments themselves to protect their property.

Further complications arose when cheques issued by Mithila Thali for the purchase bounced due to insufficient funds. Aarjab Holdings filed a case at the Kathmandu District Court, citing bounced cheques worth a total of 2.5 million rupees, with one cheque also allegedly lacking a company stamp.