Taragaon Regency Hotels, located in Boudha and operated under an international chain brand, was initially established as a government-owned project. Over time, however, banks and financial institutions gradually acquired majority ownership, primarily through share conversions.

According to a report prepared by a government-formed study committee, the shareholding of banks and financial institutions, which initially stood at 19.70%, has now increased to 54.3%.

This increase in ownership was primarily due to the conversion of preference shares into ordinary shares on July 14, 2014. These preference shares had originally been issued on April 23, 2007, under a debt restructuring arrangement. As a result of this conversion, the shareholding percentages of both general and founding shareholders decreased.

Taragaon Regency Hotels is jointly owned by the government entity Taragaon Development Committee, private investors Radheshyam Saraf and Ramlal Shrestha, the general public, and banks and financial institutions. The committee's report, prepared under the coordination of former Acting Auditor General Maheshwar Kafle, notes that the rise in the shareholding of banks and financial institutions occurred due to the proportional decrease in the shares held by the other three shareholder groups.

The report, titled “Inter-Institutional Study Committee Report on Issues/Disputes with Taragaon Development Committee – 2081”, was made public by the Ministry of Culture, Tourism and Civil Aviation on Tuesday. The ministry had formed the committee last year to study these issues.

Concerns regarding improper land valuation and the lack of lease revaluation have existed for years. Initially, the hotel's share capital stood at Rs 750 million. With the Taragaon Development Committee investing Rs 170 million, its shareholding was 22.67%. However, after multiple restructurings, the current share capital has been adjusted to Rs 1.89 billion.

According to the report, the committee now holds only 9.01% of the shares, whereas the proportion of shares owned by banks and financial institutions has significantly increased.

After issuing rights shares on April 25, 2006, the total capital increased from Rs 740 million to Rs 1.89 billion. At that time, the shareholding of banks and financial institutions reached 21.45%.

On 23 April 2007, a loan of Rs 506 million was converted into ordinary shares, while Rs 212 million of interest was converted into preference shares, thus increasing the overall shareholding of banks.

Following the 2007 restructuring, the shareholding of banks and financial institutions reached 49%. Later, on 14 July 2014, the preference shares were again converted into ordinary shares, further increasing their stake. At the same time, the holdings of founding and general shareholders were reduced.

According to the adjusted structure, the shareholding of banks and financial institutions stood at 54.73%.

The report highlights that although the share capital of the hotel has grown, the actual ownership percentage of the Taragaon Development Committee has declined. It also states that the committee's failure to purchase preference shares during earlier issuances further contributed to the reduction in its ownership.