Kathmandu– A legal dispute between Surya Goods Suppliers and Cimex Inc., the two official importers of BYD electric vehicles in Nepal, has escalated into a bitter courtroom battle. What began as a business rivalry has turned into a personal clash, jeopardizing BYD’s reputation and leaving customers uncertain about vehicle servicing and spare parts availability.
The conflict centers on dealership rights and financial mismanagement. Surya Goods, the original BYD distributor, accuses Cimex Inc. of unfair competition and bypassing their agreement. Yamuna Shrestha and Bishal Pandit, co-owners of Surya Goods, are locked in a feud, accusing each other of financial misconduct. Pandit claims Shrestha sidelined him and misused company funds, while Shrestha alleges Pandit failed to meet financial commitments and mismanaged operations.
The Patan High Court has conducted multiple hearings and attempted mediation, but no resolution has been reached. Meanwhile, customers are worried about vehicle servicing, spare parts availability, and the stability of Nepal’s electric vehicle market.
Legal Battle
Pandit has filed a lawsuit to halt BYD vehicle imports through Cimex Inc. until the dispute is resolved. On March 13, 2023, he petitioned the High Court to suspend imports. The lawsuit names Yamuna Shrestha, her brother Anil Shrestha, Cimex Inc., and Global IME Bank's Kupandol branch as defendants.
Pandit claims he invested Rs 15 million in BYD imports through Cimex but was later pushed out by Yamuna Shrestha and her brother Anil Shrestha, who allegedly diverted business to Cimex. He has requested the court to freeze Cimex's bank accounts and suspend its operations.
Additionally, Pandit accuses Shrestha of opening an unauthorized corporate bank account without his knowledge, selling company vehicles without consent, and misusing funds. He demands compensation for financial losses, including Rs 12 million used in company operations, Rs 6.7 million from vehicle sales, and Rs 5.1 million issued via a company cheque.
Meanwhile, on July 14, 2022, Yamuna Shrestha filed a counter-lawsuit, accusing Pandit of failing to fulfill his financial duties as chairman. She claims he did not secure the necessary Rs 15 billion for the BYD brand, causing the business to suffer a loss of Rs 315 million over four years.
Shrestha also accuses Pandit of misusing company funds and demands full authority over company assets. Both sides have refused to settle despite court-mandated reconciliation efforts.
Impact on BYD in Nepal
The ongoing dispute has left customers uncertain about after-sales services, spare parts, and long-term support for BYD vehicles. Cimex Inc., the official distributor, is focused on sales but has been criticized for poor customer service.
BYD’s parent company in China has remained silent on the issue, but industry experts warn that if the dispute remains unresolved, it could harm Nepal’s electric vehicle market and discourage potential buyers.
