A unidenfied gang has detonated a bomb at Ashirbad Food Production, owned by Tekan Prasad Basnet, at Tulasipur Municipality-5 on January 1. Basnet, 41, of Tulasipur Municipality-5 is also the head of Dang Chamber of Commerce.

The explosion has damaged the door of the mill. According to Inspector Devi Prasad Paudel of Tulasipur Area Police Office, one pamphlet of Jantantrik Tarai Madhes Mukti Party and a black banner were found at the site.

Paudel added the group claimed that the bomb was detonated after Basnet failed to pay the money demanded for the group. It is learnt that the group had asked for Rs 500,000 on January 1.

Police said the investigation was going on.