Nepal Investment Mega Bank CEO Jyoti Prakash Pandey Arrested Over Smart Telecom Asset Auction Case

Kathmandu. The Central Investigation Bureau (CIB) of Nepal Police on Tuesday night arrested Jyoti Prakash Pandey, the Chief Executive Officer (CEO) of Nepal Investment Mega Bank (NIMB), on charges of illegally auctioning the assets of Smart Telecom after its license had been cancelled and its property came under government control. Police said Pandey was arrested from Sindhuli while allegedly attempting to evade authorities after switching off his mobile phone.

SSP Shivakumar Shrestha, spokesperson for the CIB, confirmed the arrest and said Pandey was taken into custody with the assistance of the Sindhuli District Police Office. According to police, he is being investigated for allegedly conducting an unlawful auction of Smart Telecom’s infrastructure and equipment despite legal provisions stating that such assets remain under state control following license cancellation.

Earlier, on May 4, the CIB had arrested Sarbesh Joshi in connection with the same case. Preliminary investigation by the bureau found that after Smart Telecom failed to renew its operating license and came under the jurisdiction of the Nepal Telecommunications Authority, Nepal Investment Mega Bank allegedly auctioned the company’s assets in October with Joshi’s approval.

Police said the investigation is being conducted under charges of fraud and criminal breach of trust, accusing the involved parties of attempting to deprive the government of its legal rights over the telecom company’s property. Investigators claim that although the law grants ownership and control of the infrastructure, networks, and structures of cancelled telecom operators to the state, the bank proceeded to sell the assets to Ncell. The CIB said investigations are ongoing against other individuals and institutions linked to the deal.

Smart Telecom’s license was automatically cancelled on 16 April, 2023 after the company failed to pay nearly Rs 30 billion in government dues, including renewal fees. Under Rule 18 of the ‘Telecommunication Service Provider Property Management Regulations 2079,’ all infrastructure and network assets of a telecom service provider come under the control of the Nepal Telecommunications Authority once its license is revoked.

According to the CIB, Pandey, in his role as chairman of the bank’s Loan Recovery Committee, moved ahead with the auction process despite knowing the property had already come under government supervision. Investigators argue that the action constitutes fraud and criminal breach of trust under the Muluki Criminal Code 2074.

The bureau has also accused Pandey of another offense linked to the auction process. Police said that when the bank published the auction notice on 17 June, 2025, Smart Telecom had imposed a condition requiring an additional Rs 400 million to be paid toward outstanding house rent and electricity dues, and that the assets be sold as a single package. 

Although the bidder reportedly paid around Rs 4 billion, the CIB claims the bank retained the amount without clearing dues owed to the landowner and the Nepal Electricity Authority. Investigators have also categorized this act as fraud and criminal breach of trust.

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