11 construction companies blacklisted for contract irregularities, including Indian firm

KATHMANDU: The Public Procurement Monitoring Office (PPMO) of Nepal has blacklisted 11 construction companies, including an Indian firm, for failing to deliver work as per contract agreements. The move comes after recommendations from various government project offices citing repeated violations and negligence in contract execution.

According to a notice published by the PPMO on Monday, these companies have been barred from participating in any government procurement process for periods ranging from one to two years under Clause 63(1) of the Public Procurement Regulations 2063 BS.

Among the blacklisted are:

Rakhi Construction (Kanchanpur)

Jaljala Multi Business Construction (Rolpa)

Shivam Construction (Nepalgunj)

Jagdamba Construction (Kathmandu)

Quality Indrawati Construction

Saptakoshi Watershed Construction Company

Ashibh Nirman Sewa

Shailung Construction (Lalitpur)

Amar Harka Deepak Construction (Rukum)

Sadashiv Construction (Bardiya)

Aravali Infrapower Ltd. (India)

Duration of Blacklisting

Two-year ban: Shailung Construction and India’s Aravali Infrapower Ltd., based on recommendations from the Road Infrastructure and Development Directorate under the Department of Roads.

One-and-a-half-year ban: Saptakoshi Watershed Construction and Sadashiv Construction.

One-year ban: Remaining companies listed.

Background on Violations

The punitive action follows recommendations from a range of project offices:

The Seti Highway South Section (Tikapur-Lode-Chaipur) project in Achham recommended action against Rakhi and Jaljala Construction.

The Chaurjahari Road Division flagged Shivam and Amar Harka Deepak Construction for non-performance.

The Bagmati Civilization Integrated Development Committee reported Quality Indrawati Construction.

The Infrastructure Development Office in Okhaldhunga flagged Saptakoshi Construction, while Badhaiyatal Rural Municipality requested action against Sadashiv Construction.

Sarawal Rural Municipality in Nawalparasi filed a complaint against Ashibh Nirman Sewa.

Procurement Restrictions Enforced

The PPMO has enforced the ban under the provision that companies failing to meet contract terms, delay projects, or act irresponsibly will be disqualified from any form of public procurement for the designated blacklist period.

This marks a growing push by Nepali authorities to bring accountability to the construction and public infrastructure sectors, where delays and quality issues have long plagued development projects. The inclusion of a foreign company in the blacklist also signals Nepal’s increasing scrutiny over international contractors engaged in domestic projects.

Fiscal Nepal |
Monday August 4, 2025, 12:14:13 PM |


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