Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Ncell has requested Nepal Investment Mega Bank (NIMB) to refund around Rs 4.5 billion paid for Smart Telecom’s equipment after regulatory complications arose in the auction process.
The telecom company had paid the amount to acquire Smart Telecom’s auctioned telecommunications equipment through a bidding process. However, following concerns raised by the Nepal Telecommunications Authority regarding the legality of the process, Ncell has asked the bank to return the funds.
In a letter to NIMB, Ncell said it had participated in the auction and its bid was approved by the bank, but it has been unable to formally take possession of the assets due to legal and regulatory issues.
The disputed assets include telecom equipment located in Kumaripati, Lalitpur, which were part of collateral under a syndicated loan involving NIMB and Prime Commercial Bank.
The auction process has also come under investigation, with the Central Investigation Bureau of Nepal Police probing alleged irregularities. Former Smart Telecom Managing Director Sarvesh Joshi and NIMB CEO Jyoti Prakash Pandey have been taken into custody in connection with the case.
Smart Telecom’s operating licence was automatically revoked in 2023 after failing to renew it, and its assets were later placed under the control of the Nepal Telecommunications Authority.
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