NADA’s Proposed Special General Assembly Faces Legal Challenge Over ‘Term Extension’ Allegations

2nd September 2025, Kathmandu

The Nepal Automobile Dealers’ Association (NADA) finds itself embroiled in a new controversy after its ambitious plan to transform into the Federation of NADA Automobiles Nepal was halted by a complaint filed at the District Administration Office (DAO).

NADA Special General Assembly

The move to convene a special general assembly for this transition has been met with a formal ‘Note of Dissent’ from disgruntled members, who allege the initiative is a tactic to bypass previous assembly decisions and illegally extend the current leadership’s tenure.

The controversy is the latest episode in a series of long-standing internal disputes within NADA. It stems from a decision made during the 47th general assembly in December 2023, where a statute amendment was passed to appoint Akash Golchha as Senior Vice President, with the provision that he would automatically become the next President.

However, the DAO later invalidated this amendment, reducing Mr. Golchha to an ordinary member and similarly downgrading two other nominated members, Nishan Dhakal and Abhik Jyoti.

Critics now claim that the current leadership’s push to become a federation is a direct attempt to dissolve these past decisions and create a new framework that secures their position.

A source familiar with the internal workings of NADA revealed that this latest move was sprung without proper consultation or agenda setting. “Major decisions within NADA require an agenda to be set beforehand.

However, the move to transform into a federation was taken without including such an agenda, making the process legally invalid,” the source told ICTFrame.

They further added, “NADA was planning to dissolve its own decision and form an ad-hoc committee to continue in power. The special general assembly was called in a way that would extend its term and allow only preferred people to be kept in leadership positions.” This accusation of procedural overreach is at the heart of the formal complaint filed by dissatisfied entrepreneurs.

The complaint alleges that the special assembly is an illegal maneuver to avoid implementing the outcomes of the previous annual general assembly and to escape unresolved disputes.

A source from Clickmandu noted, “Even earlier, NADA’s General Secretary was calling the President to discuss these issues. Without resolving earlier disputes, the leadership suddenly announced the federation move to escape the controversy.”

The filing of the complaint, signed by nine executive members, has brought the planned special assembly—which was scheduled for September 9—to an immediate standstill.

In response to the complaint, the District Administration Office has issued a directive to NADA, instructing them not to proceed with the special assembly for the time being.

The DAO has demanded that NADA’s leadership appear before the office within seven days to provide a formal clarification on several critical points.

The questions raised by the DAO are pointed and directly address the core of the controversy: Why is a special general assembly being held without first convening the regular one? Why do repeated disputes over statute amendments remain unresolved? And what decisions were taken to justify calling this specific special assembly?

The public declaration to become a federation, which was enthusiastically announced by NADA’s central executive committee on the closing day of the NADA Auto Show 2025, has been significantly undermined by this directive.

The six-day auto show, the 17th edition of the event, had successfully concluded on August 24. While the announcement may have been intended to project a vision of progress and growth, its timing and method have only served to exacerbate internal tensions.

This new legal and procedural battle highlights the deep-seated divisions that have plagued NADA for a long time, most notably the rift between Karan Chaudhary and Akash Golchha.

This long-running conflict has been a primary cause of internal strife, even leading to the formation of the splinter group, the Nepal Automobile Imports and Manufacturers Association (NAIMA).

The fact that both the NADA Auto Show and the NAIMA Nepal Mobility Expo were held within a week of each other this year further underscores the persistent fragmentation within Nepal’s automobile industry.

The current situation with the special general assembly indicates that these issues are far from resolved, leaving the future of NADA’s leadership and its proposed transformation in a state of profound uncertainty.

For more: NADA Special General Assembly