Behind the Ncell Sale Freeze: Political Pressure, Tax Evasion Claims and a Secret Government Report

Kathmandu. Nepal’s second-largest telecommunications service provider, Ncell Pvt. Ltd., is approaching the final phase of its 25-year operational period. Under the law, upon expiry of this period, all of the company’s assets are required to automatically transfer to government ownership. However, delays in the ownership-transfer process, ongoing tax disputes, and political interference have rendered the entire procedure highly complex.

The Nepal Telecommunications Authority (NTA) has allocated NPR 10 million in the budget for the upcoming fiscal year to initiate a study on Ncell’s commercial operating framework. This study is regarded as the first formal step toward establishing the legal and administrative groundwork for the potential nationalization of Ncell.

The 25-Year License and the Provision for Government Ownership

Ncell obtained its Unified License on 1 September 2004 (16 Bhadra 2061 BS), which is set to expire on 1 September 2029 (15 Bhadra 2086 BS).

According to the Telecommunications Act, 2053 (1997), assets (land, buildings, equipment, and infrastructure) of any company with foreign investment exceeding 50 % automatically pass into government ownership upon licence expiry.

During the license renewal in 2024, the government imposed a clear condition: “The company may continue operations until 2029 without altering its ownership structure, after which the assets will automatically revert to the government.”

Yet even this critical provision is now becoming entangled in a web of power struggles and vested interests.

The Malaysia–UK–Nepali Business Triangle

In December 2023, the Malaysian company Axiata Group Berhad announced the sale of its 80% stake in Ncell. The buyer was Spectrlite UK Limited, an entity linked to non-resident Nepali businessman Satish Lal Acharya. The transaction was valued at approximately USD 150 million (roughly NPR 20 billion).

To date, neither the government nor the NTA has granted formal recognition to this transaction. Legally, therefore, the company remains registered as “Ncell Axiata Limited.”

Sources indicate that the NTA directed Axiata as early as December 2023 to submit complete details of the sale agreement, but files have been stalled due to political pressure and behind-the-scenes maneuvering.

Supreme Court Order and Regulatory Silence

In December 2024, the Supreme Court issued a clear directive: “Ncell must complete all legal procedures related to changes in foreign investment and ownership.”

Despite Spectrlite UK submitting a formal request for approval to the NTA in March 2024—three months after the court order—no decision has been made to date.

Some observers now describe this delay as a “strategic move to facilitate eventual nationalization.”

Analysts suggest that “the government appears to be preparing to take the company directly into state ownership after 2029 by preventing formal recognition of the new ownership structure.”

Tax Disputes and the ‘Ncell Exposé’ Report

Another highly sensitive issue is the ongoing tax controversy.

In the process of divesting its stake, Axiata repatriated a substantial sum abroad in the form of dividends. Although the government has attempted to collect the applicable taxes, the exact amount owed remains unclear.

Sources within the Ministry of Communications and Information Technology confirm the existence of a confidential report titled “Ncell Exposé,” which details the full extent of tax liabilities, ownership changes, and payments. The continued non-disclosure of this report has only heightened public suspicion and distrust.

(This is a developing story; keep on following bizshala for more investigative news reports.)