Smart Telecom Auction Scandal Deepens After Ncell Seeks Rs 4.6 Billion Refund
जेठ १, २०८३ १५:५
Kathmandu. A new development has surfaced in the investigation into the controversial auction of government-controlled assets belonging to Smart Telecom, with telecom operator Ncell demanding either legal ownership of the purchased assets or a refund of Rs 4.6 billion from Nepal Investment Mega Bank.
The case is being investigated by the Central Investigation Bureau (CIB) of Nepal Police over allegations that Smart Telecom assets, which had already come under government control, were illegally auctioned in collusion to undermine state ownership rights.
Following the launch of the investigation, former Smart Telecom chairman Sarbesh Joshi was arrested on May 5, 2026. Police allege Joshi unlawfully approved the auction of assets that were no longer under the company’s ownership. Two others involved in the auction process, Palina Shrestha and Narendra Ulak, were also taken into custody.
As the investigation expanded, on May 12, police arrested Jyoti Prakash Pandey, the Chief Executive Officer of Nepal Investment Mega Bank, on charges related to the alleged illegal auction of Smart Telecom assets.
On the same day as Pandey’s arrest, Ncell sent a formal letter to the bank stating that it had not been able to obtain ownership of the Smart Telecom equipment and infrastructure purchased through the auction process.
In the letter signed by Ncell CEO Michael Foley, the company stated that it had submitted a bid of Rs 4.6 billion in response to an auction notice published on June 17, 2025, and that the bid had been accepted. However, when Ncell later sought approval from the Nepal Telecommunications Authority (NTA) to register the assets in its name and integrate them into its network, the authority informed the company that the auction and transfer process did not comply with the law.
Ncell has now asked the bank to either complete the legal transfer of ownership immediately or refund the full Rs 4.6 billion paid for the assets. The letter is being viewed as a further indication that the auction process itself may have been legally invalid.
Smart Telecom’s operating license was automatically revoked on April 16, 2023, after the company failed to pay nearly Rs 3 billion in renewal fees and government dues. Under the Telecommunications Act and Property Management Regulations, all infrastructure, equipment, and network assets of a telecom company come under government ownership once its license is canceled.
The Nepal Telecommunications Authority had publicly announced on May 22, 2023, that Smart Telecom’s assets had come under government control. Despite this, Nepal Investment Mega Bank proceeded with an auction process on August 8, 2025, claiming it was recovering outstanding loans.
Investigators say former chairman Joshi gave written consent to the bank for the auction on September 5, 2025, despite no longer having any legal authority over the assets.
Authorities are also examining possible collusion between Ncell, Smart Telecom investors, and the bank during the auction process. While two other bidders reportedly offered only Rs 420 million and Rs 440 million respectively, Ncell submitted a significantly higher bid of Rs 4.6 billion.
Of the amount received through the auction, Rs 4.22 billion was reportedly used to settle bank loans, while the remaining Rs 380 million remains with the bank.
Investigators have also raised questions over the role of Ncell investor Satish Lal Acharya. According to a report prepared by a committee led by Tanka Mani Sharma Dangol to investigate Ncell share transactions, business interests linked to Acharya’s group were connected to both Smart Telecom and Ncell, raising concerns over possible cross-holding arrangements.
The report suggests the auction may have been used as a mechanism to clear liabilities linked to Smart Telecom while leaving behind more than Rs 700 million in unpaid government revenue.
Questions have also been raised over the role of the Nepal Telecommunications Authority, which remained inactive for months while the auction process moved forward despite the assets already being under government control. The authority only formally intervened nearly four months after the auction had been completed.
पछिल्लो अध्यावधिक: जेठ १, २०८३ १५:५
