Swiss Government Recommends VFS Global to Responsibly Relocate from Chhaya Center, Kathmandu

In response to complaints filed by two Nepali organizations against VFS Global, the Swiss government’s National Contact Point (NCP) for Responsible Business Conduct has recommended that VFS Global responsibly terminate its lease agreement with Chhaya Center, located in the tourist hub of Thamel, Kathmandu.

Headquartered in Zurich, VFS Global was the subject of a complaint submitted on August 25, 2024, to the NCP under the Swiss State Secretariat of Economic Affairs. The complaint alleged that VFS Global failed to conduct adequate human rights due diligence regarding its involvement with Chhaya Center, and that its continued operation at the center negatively impacted the human rights of the indigenous Newa community. The company was accused of violating the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

On December 6, 2024, VFS Global informed the NCP in writing that it would not renew its lease at Chhaya Center and planned to relocate its visa application center as soon as possible. However, as of today, the center continues to operate from Chhaya Center in Kathmandu. In its Final Statement published on June 25, 2025, the Swiss NCP again recommended that VFS Global terminate the lease agreement responsibly. The NCP also expressed regret that VFS rejected the complainants’ request for dialogue and recommended that VFS participate in such dialogue in the future.

Chhaya Center’s construction has been controversial due to alleged human rights violations against the indigenous Newa people, particularly the local Pradhan Newa community of Thamel. The center was reportedly built on ancestral Guthi land, including the historic Kamal Pokhari and surrounding properties traditionally used for religious and cultural purposes. The conversion of this public heritage land into private property and its commercial development as Chhaya Center has led to legal disputes and protests. These court cases have been ongoing for decades and are currently under review by the Supreme Court of Nepal since 2014. Activists associated with the complaints have also reportedly faced threats and harassment.

The NCP’s Final Statement emphasized that no threats or retaliation are permissible against the complainants or the NCP. The statement also noted that Chhaya Center, through its legal counsel, had requested the withdrawal of the NCP’s Initial Assessment report, citing damage to its economic and reputational standing.

Although the NCP has now closed the complaint process, it remains unclear when or how VFS Global will fulfill its commitment to exit its relationship with Chhaya Center. Moreover, VFS Global has not acknowledged any role in the alleged human rights violations against the Pradhan Newa community, nor has it used its influence to mitigate the negative impacts or engage in consultations with community representatives. With the decision to relocate from Chhaya Center, the possibility of mediation on this issue has ended, and the rejection of dialogue by VFS has prevented any redress for past impacts.

In a related case from August 2023, a similar complaint was filed with the U.S. NCP under the U.S. State Department against another multinational, Marriott International, which also operates from Chhaya Center. However, the U.S. NCP has yet to conclude the process, and Marriott International has not meaningfully engaged in that procedure.