December 20: The State Affairs and Good Governance Committee of the House of Representatives has instructed the government not to approve the transaction of Ncell shares until an inquiry committee submits its report.

The committee issued this instruction after holding a discussion with Prime Minister Pushpa Kamal Dahal, along with Communications Minister Rekha Sharma on Tuesday.

The committee meeting has decided to instruct the Government of Nepal, the Office of the Prime Minister and the Council of Ministers, the Ministry of Finance, the Ministry of Communications and Information Technology and the Ministry of Industry, Commerce and Supplies not to give any approval or consent to Ncell’s share transaction until the probe committee prepares its report on the contentious deal.

The parliamentary committee has instructed the government to recover the taxes from Ncell due to the state based on the report of the inquiry committee and as per the prevailing laws.

The committee has also asked to check the buyer's capacity and experience in running the company while buying and selling large companies like Ncell.

The committee has instructed the government to take the initiative to bring Ncell under the ownership of the government in 2086 BS (2029 AD). The committee has decided to instruct the Government of Nepal, the Office of the Prime Minister and the Council of Ministers, the Ministry of Communication and Information Technology and the Ministry of Industry, Commerce and Supply to amend the necessary laws and regulations for this.

The Telecommunication Act mentions that the license period of any telecommunication company shall be a maximum of 25 years. Ncell received license on September 1, 2004. Its license will expire after the 25th year on September 1, 2029.

Section 33 of the Act states that "land, buildings, devices, equipment and structures related to telecommunication services in which more than 50 percent of the total capital investment is invested by foreign individuals or organizations shall be owned by the government after the expiry of the license."

In the current situation, Ncell will come under the ownership of Government of Nepal after 6 years.