Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Supreme Court of Nepal has issued a directive to the Nepal Telecommunications Authority (NTA) to ensure the effective regulation of telecom companies and enforce strict compliance with licensing terms for Ncell Axiata Limited.
The directive was issued in response to a writ petition filed by Member of Parliament Amresh Kumar Singh, seeking the cancellation of a share transfer deal between Malaysia-based Axiata Group, which holds an 80% stake in Ncell, and SpectraLight UK Limited. The Supreme Court dismissed the petition while also issuing an instructive order to the government and Ncell Axiata Limited.
Petition Dismissal and Directive Issued
MP Singh’s petition argued that NTA had not previously approved the share transaction. However, the Supreme Court determined that the NTA had already decided on Chaitra 15, 2080 (March 28, 2024), not to authorize the share transaction. As a result, the court dismissed the petition but emphasized the need for strict adherence to legal and regulatory standards.
The bench of Justices Sapana Pradhan Malla and Tek Prasad Dhungana noted that Axiata Group did not obtain prior approval from the NTA for the share transaction, as required by law. The directive mandates strict compliance with licensing terms and transparency in operations.
Call for Transparent and Lawful Operations
In its directive, the Supreme Court stated: “The respondent Ncell Axiata Limited is instructed to operate services transparently and in accordance with the Telecommunications Act, relevant regulations, the Nepal Telecommunications Authority (Sale and Purchase of Shares by License Holders) Regulations, and the terms of the license.”
The court also instructed the NTA to carry out its regulatory duties effectively, ensuring all telecom companies, including Ncell, adhere to the law.
Regulatory Concerns Highlighted
The directive raised concerns about NTA’s oversight capabilities, emphasizing its authority to penalize companies that fail to comply with licensing terms. The court questioned why Axiata Group did not obtain prior approval for the share transaction and urged NTA to take stronger regulatory action.
“An instructive order has been issued to the Nepal Telecommunications Authority to ensure the effective regulation of all license-holding entities, including Ncell, in accordance with the law,” the court’s order stated.
This ruling underscores the importance of regulatory compliance and transparency in Nepal’s telecommunications sector, setting a precedent for stricter enforcement in the future.
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