Kathmandu: The Supreme Court has issued a directive order in the name of the Telecommunications Authority to regulate all persons, including companies licensed as telecommunications service providers, effectively in accordance with the law.

On the writ petition filed by House of Representatives member Amaresh Kumar Singh claiming that Ncell did not obtain the permission or approval of the Nepal Telecommunications Authority before buying, selling or transferring five percent of the paid-up capital shares as per the Telecommunications Regulations, a joint bench of Justices Sapana Pradhan Malla and Tek Prasad Dhungana issued the summary order in the name of the authority. The writ petition made Ncell Agency, Nepal Telecommunications Authority, Spectrolite, a British company owned by Shatislal Acharya, Sunivera Capital Ventures, the Office of the Prime Minister and Council of Ministers, among others, as respondents.

The Supreme Court has issued a directive order stating that the share structure of ncell, which has foreign investment, has changed repeatedly, and some serious problems and trends have emerged regarding the conditions and procedures to be followed by the licensed person and the regulation of the regulatory body when buying and selling shares in the country and abroad. The order states that it is necessary to issue some instructions to the concerned parties to enhance clarity and effectiveness in the operation and regulation of companies with foreign investment in the coming days.

Businessman Acharya’s company had earlier purchased 80 percent of ncell’s shares. Similarly, 20 percent of ncell’s shares were purchased and sold in the name of Sunivera Capital Ventures, which is in the name of Acharya’s wife Bhavana Singh. A writ was filed demanding that the agreement to sell shares at a low price with the intention of evading taxes without complying with the laws of Nepal be rejected while buying and selling the shares. The Supreme Court has issued a directive order despite ruling to dismiss the writ petition. The order states, “Ncell Axiata Limited has been issued a directive order to operate the service in a transparent and lawful manner by strictly complying with the Telecommunications Act, 2053, Telecommunications Regulations, 2054, and the Nepal Telecommunications Authority (Purchase and Sale of Shares by Licensees) Regulations, 2076, and the terms and conditions of the license,” the order states, “A directive order has been issued in the name of the Telecommunications Authority to effectively regulate all licensees, including Ncell, as per the law.” It was also decided that the share sale agreement between Axiata Investments, (UK), and Spectralite (UK) Limited was not submitted for prior approval, the Authority had even sent repeated correspondence and that approval could not be given as it was. In a writ petition filed against Ncell, including the Large Taxpayers’ Office, the Supreme Court’s full bench had held that Ncell had acted contrary to the principle of full disclosure and had not submitted the required documents.