Regulatory Collusion With Classic Tech: How Was Permission Given To Send Rs 770 Million Abroad Despite Unpaid Dues?
पुस १, २०८२ १३:२७
Kathmandu: Internet service provider Classic Tech has been found to have repeatedly received foreign exchange facilitation for three consecutive years despite failing to pay royalties and contributions to the Rural Telecommunication Development Fund (RTDF). This is in direct violation of the Telecommunication Equipment Import and Foreign Exchange Recommendation (Procedure) Regulations, 2076.
Despite non-payment of statutory dues, the Nepal Telecommunication Authority (NTA) continued to recommend foreign exchange payments for the company. According to authority records, Classic Tech has not deposited RTDF and royalty amounts into the government account since fiscal year 2077/78. In fiscal year 2076/77, the company deposited RTDF but failed to pay royalties.
Even so, Classic Tech continued to receive foreign exchange recommendation facilities from fiscal year 2077/78 through 2079/80. The NTA appears to have halted these recommendations only from fiscal year 2080/81, citing non-payment of dues.
The regulations clearly state that service providers seeking foreign exchange recommendations must have paid all required fees, including frequency fees, royalties, and RTDF contributions. Only after these payments are cleared can the authority recommend foreign currency payments to the concerned bodies.
Contrary to this provision, the NTA failed to collect outstanding dues and continued issuing recommendations for three years. As a result, Classic Tech’s arrears have now crossed Rs 500 million.
Currently, foreign exchange facilitation and other regulatory benefits have been stopped due to non-payment. The company’s license has also not been renewed. Despite this, Classic Tech continues to operate internet services without a valid license, which constitutes illegal operation under the law.
During the period of non-payment, Classic Tech received approval to send Rs 772.8 million abroad. Of this, Rs 213.5 million was approved in fiscal year 2077/78, Rs 286.4 million in 2078/79, and Rs 276.9 million in 2079/80.
A senior official at the authority said Classic Tech was granted foreign exchange recommendations despite unpaid dues due to concerns that stopping facilitation could disrupt services. He said the facilitation should have been stopped much earlier as the company failed to pay even after repeated support.
“Classic Tech is one of the largest ISPs in the country. There was concern that services might be disrupted if foreign exchange recommendations were suddenly halted. So facilitation was continued for a few years,” the official told TechPana. “But even after that, the company did not pay its dues. In hindsight, facilitation should have been stopped three years ago.”
ISPs licensed by the authority require foreign currency recommendations to pay for bandwidth, software, equipment, installation, maintenance, training, and consulting services sourced from abroad. Service providers must justify that such services are not available within Nepal while applying for the recommendation.
Former NTA chairman Bheshraj Kandel said the regulator should act immediately when arrears remain unpaid for a long time and involve large sums. He said limited flexibility may be justified for minor dues or temporary issues, but not in a case like Classic Tech.
“The authorities should have stopped facilitation immediately. The company does not have a valid license and is operating illegally,” Kandel said. “In such a situation, foreign exchange facilitation should have been halted and recovery action initiated. It is unclear whether the authority was weak or collusive. Providing facilitation for three years despite unpaid dues is unjustifiable.”
Due to a long-running dispute over royalty and RTDF calculations on maintenance fees, the NTA stopped foreign exchange recommendations for Classic Tech and other large ISPs only from fiscal year 2080/81. As a result, companies such as Subisu, Vianet, and WorldLink were also temporarily affected.
After the Supreme Court resolved the dispute, Subisu, Vianet, and WorldLink resumed receiving foreign exchange recommendations after clearing their dues. However, the NTA has stated that Classic Tech has still not paid its outstanding amounts, and therefore, license renewal and other facilitation remain suspended.
पछिल्लो अध्यावधिक: पुस १, २०८२ १३:२७
