A company under the Chaudhary Group, which had filed a writ petition challenging the government's decision to register the land of the Bansbari Leather Shoe Factory in the government's name, has withdrawn its claim to the disputed property.

The government previously investigated and nationalized 10 ropanis of the factory’s land, alleging that the Chaudhary Group had acquired it illegally. On February 25, 2024, Sanjay Thakur, representing the former Champion Footwear Pvt. Ltd., filed a writ petition in the Supreme Court challenging the nationalization. Notably, Champion Footwear was later renamed CG Chandbagh Residency School.

On Tuesday, Thakur submitted another petition to the Supreme Court seeking to withdraw the earlier claim. Acting on this request, a division bench of justices Manoj Kumar Sharma and Nripadhwaj Niraula ruled that the withdrawal was valid and stated that the "demands will be met." Supreme Court spokesperson Achyut Kuinkel clarified, "Since the applicant has abandoned his claim to the land, he cannot file a petition to reclaim it in the future."

With this ruling, the Chaudhary Group's CG Chandbagh Residency has officially lost its claim over the Bansbari land, which remains nationalized.

Meanwhile, investigations into the case by the Central Investigation Bureau (CIB) of the Police and the Commission for the Investigation of Abuse of Authority are ongoing. The CIB has been tasked with completing its investigation report by mid-January, but no time limit has been set for the Commission’s inquiry. Last year, the police arrested Arun Chaudhary, chairman and managing director of CG Holdings, in connection with the alleged land fraud.

The controversy centers on a decision by the board of directors of the then Bansbari Leather Shoe Factory to register the land in the name of Champion Footwear without proper government authorization, an act the police deemed illegal. Under a prior agreement, the Chaudhary Group was to own 51% of Champion Footwear, the factory would hold 25%, and the remaining shares would belong to the general public. However, instead of contributing funds to acquire its 25% stake, the factory transferred the land to Champion Footwear, converting it into shares.

Police investigations revealed that while the factory's contribution exceeded its agreed 25% share, the Chaudhary Group failed to invest the funds required to fulfill its 51% ownership stake. This discrepancy further substantiated allegations of irregularities in the land transfer process, leading to the government’s decision to nationalize the land.