Rs 4.6 Billion Telecom Deal Under Investigation as CIB Collects Documents from Ncell in Smart Telecom Asset Probe
बैशाख ३१, २०८३ १६:२३
Kathmandu. The Central Investigation Bureau (CIB) of Nepal Police on Thursday collected key documents from the headquarters of Ncell as part of an ongoing investigation into alleged large-scale financial irregularities and misuse of government-owned telecommunications assets.
CIB sources clarified that the team only collected documents and did not conduct a raid. The investigation is focused on the alleged illegal handling and auction of Smart Telecom’s assets, which were reportedly under government control following the company’s failure to renew its operating license and pay required fees.
Smart Telecom’s license was automatically canceled on 16 April 2023 after it failed to comply with renewal obligations. Under the Telecommunications Act, 2053, and the Telecommunications Service Providers’ Property Management Regulations, 2079, all assets, infrastructure, and network facilities of such companies are legally transferred under government control, managed through the Nepal Telecommunications Authority (NTA).
The NTA had publicly announced on 22 May 2023 that Smart Telecom’s assets had come under government control. However, the case took a criminal turn after Nepal Investment Mega Bank (NIMB) allegedly auctioned and sold these state-controlled assets to Ncell.
The CIB has already arrested former Smart Telecom chairman Sarbesh Joshi in connection with the case. He is being investigated on charges of fraud and criminal breach of trust for allegedly authorizing the auction of assets after losing legal ownership.
Similarly, NIMB CEO Jyoti Prakash Pandey was taken into custody on Wednesday. The bank has maintained that the auction was conducted under prevailing banking and secured transaction laws for loan recovery purposes. However, investigators view the sale of government-controlled assets as a serious financial offense. Two other individuals, Palina Shrestha and Narendra Ulak, linked to the auction process, have also been arrested.
Ncell’s involvement in the purchase has come under particular scrutiny. Based on an auction notice issued on 17 June 2025, Ncell reportedly acquired Smart Telecom’s assets for Rs 4.6 billion. Two other bidders had offered significantly lower amounts of Rs 420 million and Rs 440 million, respectively. The wide gap between bids and concerns over valuation has raised questions among investigators.
Experts and preliminary findings suggest that the transaction may have been structured to settle bank liabilities while bypassing government dues. Smart Telecom reportedly owes over Rs 7 billion in unpaid revenue to the government, excluding license renewal fees, which could bring total liabilities close to Rs 30 billion.
An investigation committee led by former Auditor General Tanka Mani Sharma has also flagged potential “cross-holding” issues, noting overlapping financial interests between stakeholders linked to Smart Telecom and Ncell. The report suggests that companies with shared investor backgrounds may have been involved in restructuring assets to avoid state obligations while clearing private banking debts.
The role of the Nepal Telecommunications Authority has also come under question. Although the assets were under its control, the regulator reportedly did not intervene during the auction process, even after public notices were published in national dailies.
While the authority later formed a valuation committee after the auction process had progressed, critics have questioned the timing and intent of the move. The committee, coordinated by Rajesh Parajuli, was formed after bids were already opened by the bank, raising concerns over procedural effectiveness.
Although NTA Chair Bhupendra Bhandari stated that correspondence had been made to halt the auction, investigators note that no decisive legal action was taken until early 2026, when further disclosures emerged from Ncell. Subsequent administrative steps, including committee restructuring, have also drawn scrutiny amid allegations of procedural delays and regulatory inaction.
पछिल्लो अध्यावधिक: बैशाख ३१, २०८३ १६:२३
