Nepal Food Corporation (NFC) has moved to evict two private companies operating their businesses illegally on its property at Bhadrakali even though their rental agreement has expired.

The line ministry of the state-owned corporation, the Supplies Ministry, had told the errant tenants, Manoj Driving and a Chinese company, to vacate the land last week. On Wednesday, the ministry called the police after they defied the eviction order. The police threw out Manoj Driving and told the Chinese company to leave.

The Supplies Ministry had recalled the then general manager of NFC Shivahari Shrestha charging him with incompetence and possibly colluding with the companies that have been overstaying their lease. Newly-appointed General Manager Gokul Prasad Dhital said letters had been sent to the two companies asking them to leave the place. “We have asked the companies to leave the place as soon as possible as the contracts with them have already expired,” said Dhital. He added that the corporation would begin legal proceedings if the companies did not vacate the premises.

NFC leased out its land to Manoj Driving on October 3, 2012 for two years. The company receives a rent of Rs35,555 per month for the 7 ropanis of land. The corporation has been accused of renewing the contract for another two years before the lease ran out.

The rental agreement expired some four months ago, and NFC invited bids for a fresh contract on October 7. However, the state-owned enterprise has not been able to select a tenant even though it had received offers of up to Rs600,000 per month.

The Chinese company, meanwhile, had rented 33 ropanis of NFC’s land in 2011 on the pretext of starting an agricultural business. It pays Rs80,000 per month as rent. NFC has been allowing it to operate on the land without conducting a bidding process for the last five years.