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NTA initiates study on Ncell share purchase-sale issue

Khabarhub

December 6, 2023

2 MIN READ

NTA initiates study on Ncell share purchase-sale issue

Nepal Telecommunications Authority Central Office/File photo.

KATHMANDU: The Nepal Telecommunications Authority (NTA) has initiated an investigation into the recent purchase of an 80% share of Ncell.

Last Friday, the Axiata Group announced the sale of its entire shares to the UK-based SpectraLite company, constituting an 80% stake in Ncell.

Acknowledging the absence of prior approval, the NTA demanded an explanation from Ncell. NTA Chairman Purushottam Khanal confirmed the initiation of inquiries into the matter.

“Regarding this company’s securities collection process, we have corresponded accordingly,” stated Khanal during an economic committee meeting on Wednesday.

He further indicated that the authority would conduct a study subsequent to the securities collection.

Lawmaker Dipak Khadka previously highlighted the issue of tax evasion, mentioning his avoidance of using Ncell SIM cards due to concerns over tax evasion incidents.

He emphasized the importance for larger businesses to fulfill tax obligations, unlike regular individuals adhering to tax norms in personal transactions.

With concerns revolving around Ncell’s share dealings, parliamentary committees are currently displaying significant interest in the matter.

The Finance Committee under the House of Representatives is actively investigating telecommunications royalties and Ncell’s business operations. Similarly, the Public Accounts Committee is deliberating on this subject matter.

NTA Chair Khanal has indicated pending information on collecting royalties exceeding 2.25 billion rupees from nine service providers.

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