SC issues order to treat people respectfully at customs points

Kathmandu, May 16

The Supreme Court (SC) has issued an interim order against the government that the law enforcement officials must behave and cause others to behave respectfully towards every individual while implementing the customs-related rules at the Nepal-India border points.

Issuing the order on Friday, joint bench of justice duo Hari Prasad Phuyal and Tek Prasad Dhungana directed the Prime Minister's Office, Ministry of Home Affairs, Ministry of Finance and Department of Customs to ensure that the law enforcement official's behaviour is not against the right to live with dignity as mentioned in the Constitution.

The Ministry of Finance had issued a notice a year ago to implement the provision to impose customs duty on goods worth above Rs. 100. The Customs Department had begun strictly enforcing the rule from April this year.

The petitioners, advocates Amitesh Pandit, Suyogya Singh, Prashant Bikram Shah and Akash Mahato from DJ Law Associates, had demanded an interim order directing not to immediately implement or cause the implementation of the provision.

However, the SC did not clearly say anything for or against the government's decision to impose customs duties on goods worth above Rs. 100 brought to Nepal from India via land routes.

According to the order, except for controlling the transportation of goods for commercial purposes or the criminal offence of smuggling, lawful import of medicinal items related to an individual's health, items of minimal necessity used in social relations, and minimal commodities purchased for the personal use of local residents of the border area should be respected.

But the SC said clearly that imposing customs duty is a sovereign right of the government (State).

It stated that the validity, relevance, and appropriateness of the limit of Rs. 100 specified by the MoF by publishing a notice in the Nepal Gazette exercising the power conferred by the law, will be considered during the full hearing of the petition.

In their petition, the advocates had demanded appropriate orders including mandamus and prohibition not to create any hindrance or obstruction in bringing daily and monthly food supplies through the border checkpoints, to grant full exemption on any obstruction or duty on goods carried while travelling for marriage or visiting relatives, and to implement strict monitoring for smugglers.

Similarly, the petitioners argued that while individuals travelling by air are granted exemptions to bring one mobile phone handset, 25 grams of gold, and even a 32-inch television, and while at the Chinese Tibetan border points, exemptions are granted to bring goods through the checkpoints simply by verifying citizenship, it is evident that the government has discriminated people residing at the southern border.

Stating that the century old relations between Nepal and India has transformed the specific border regions into a distinct kind of Semi-Integrated Socio-Economic Zone, the petition maintained that for the people, the market across the border is of their own village, the hospital across the border is the health post of their own neighbourhood, and the relatives across the border are members of their own household.

Published in The Rising Nepal daily on 17 May 2026.

Nepal hosts ADR conference

 Kathmandu, Dec. 13

Nepal has hosted a conference on the resolution of industry, commerce, contractual, and civil disputes for the first time.

The event, inaugurated by Prime Minister KP Sharma Oli in Lalitpur on Thursday, aims to promote mediation and reconciliation as effective methods for resolving disputes.

Experts, institutions, and business leaders from various countries are participating in the 4-day international conference held under the theme of 'Modernising Dispute Resolution: The Role of ADR in Enhancing Access to Justice', informed Nepal International ADR (Alternative Dispute Resolution) Centre, organiser of the event.

Senior advocate Matrika Prasad Niraula, Secretary-General of the ADR Centre, said that representatives from 17 countries, including Nepal, Japan, Switzerland, Australia, Hong Kong, Malaysia, Indonesia, Singapore, India, Pakistan, Bangladesh, Bhutan, Sri Lanka, the United Kingdom, New Zealand, China, and the United States, are attending the event.

The conference will deliberate on topics like contractual disputes, investment-related conflicts, development and construction issues, the United Nation’s model laws, and the judiciary’s role in mediation and reconciliation.

According to the organiser, the event marks a significant milestone for Nepal’s ambitions in the global dispute resolution arena while also linking the importance of sustainable practices with legal innovation.

 Published in The Rising Nepal daily on 14 December 2024.  

SC issues order on management of border with India

Kathmandu, Sept. 15:

The Supreme Court of Nepal has issued a full text of the verdict in which it issued a mandamus in the name of government on 25 April 2021 demanding better management of the open border between Nepal and India.

Constitutional expert and advocate Dr. Chandrakant Gyawali, border expert Buddhi Narayan Shrestha, and advocates Bimal Gyawali, Liladhar Upadhyaya, and Shashi Kumar Karki had filed a writ petition on 26 March 2017 seeking orders from the Supreme Court to regulate the Nepal-India border. The petition was filed against the various government ministries and agencies including Prime Minister’s Office, Parliament Secretariat, Ministry of Foreign Affairs, Ministry of Home Affairs, Ministry of Defense, and Ministry of Land Management. 

The full text of the verdict issued in the name of the government by the joint bench of Justices Prakashman Singh Raut and Purushottam Bhandari in 2021, ordered the government to prevent illegal and criminal activities in the border area and to manage the entry and exit of people through the border. 

“Manage the border on the basis of the constitution of Nepal, existing laws, international laws and the treaties as well as agreements between the two countries to protect Nepal’s independence, sovereignty, geographical integrity, nationality, independence, self-respect, and the rights and interests of Nepali citizens,” read the full text. 

However, it has maintained that the protecting of the border and national interest of the country, on the basis of mutual equality, respect and mutual interest. It has said that the government should sign more treaties with India through political and diplomatic initiatives, if needed. 

According to the verdict, the security agencies should made the security system at the border should be made tighter and drones and CCTVs should be used for effective surveillance. “Provide language training to the human resources working at the immigration offices and security agencies at the border crossings, and make the travelers entering Nepal show their official identity cards at the immigration office or security agencies. Keep records of the same to regulate and manage the movement in the border area,” read the full text of the mandamus. 

The SC has also asked the government to resolve the border disputes with India. 

“For the clarity and demarcation of the disputed border areas of Nepal, take diplomatic initiative and reach an agreement with India to ensure that disputes do not arise again,” read the verdict. Such agreements should be made on the basis of the past treaties between the two countries and historical documents.  

Responding to the government’s response to the court that an expert group is involved in the work of constructing and restoring the missing border pillar, and clearing the Dasgaja (no-man’s land) area, the SC also issued a mandate that the work should be carried forward effectively and the border dispute should be resolved.

The court has also taken a special notice of the state and condition of the country’s border, control of cross-border criminal activities, and said that these issues directly or indirectly are of the interest and concern of all Nepali citizens. 

According to the SC, since it is the government’s responsibility to protect Nepal’s independence, sovereignty, geographical integrity, national unity, independence and self-respect and the rights and interests of Nepali people as well as to protect the border, and to initiate a review of the treaty agreement between Nepal-India regarding open border management and regulation. 

Likewise, to protect the livelihood of the Nepali people and prevent border abuse is also the responsibility of the government, read the text. “The government can’t shy away from its responsibility to control illegal activities at the border citing tradition or any other causes. 

Although the government said that it has been putting efforts to control the criminal activities at the border points, smuggling of drugs, girl trafficking, transaction of counterfeit currencies, and other criminal activities are happening ther” said the Court. 

 Published in The Rising Nepal daily on 16 September 2023. 

SC rules not to further extend Upper Karnali deadline

Kathmandu, July 7

The Supreme Court has barred the government from extending the deadline for the financial closure of the 900-megawatt Upper Karnali Hydropower Project.

Making public the full text of the verdict issued by the constitutional bench of the SC on the case filed against the government’s decision to extend the deadline for financial closure for the Grandhi Grandhi Mallikarjuna Rao (GMR), the Indian promoter of the Upper Karnali Hydropower Project, the court allowed the government last decision to provide a two-year time period for financial closure but barred the latter from extending it further.

The SC issued its verdict on May 7 this year. However, on November 3 last year, the SC had issued an interim order against the government's decision to give additional time for the company for the financial arrangement.

According to the court verdict, the company will get additional six months since the interim order to alter it in May – which means it can finalise the financial closure by February 2024.

Stating that the company failed to arrange financial resources to develop the project for a decade and the project had got enough time for the same, the court said that further extension of the deadline would be against the public aspirations for development and prosperity and public policy. It also asked the government to proactively implement the project.

Meanwhile, the SC also issued an order in the name of the government to complete the land acquisition in Achham district which has been remaining stalled although there had been successful coordination for the same in other locations.

A Cabinet meeting in mid-July 2022 decided to extend the financial closure deadline for the GMR till mid-July 2024. Ratan Bhandari had filed a writ at the SC against the decision.

However, the court had denied issuing certiorari and mandamus against the government as demanded by the petitioners as there was no a condition that the deadline was against the constitution or the law of land. "The project development agreement with the company was not the one which should be approved by the parliament but it is a business agreement signed with the government and company established in Nepal," read the verdict.

The SC also refrained from questioning the government's wisdom regarding the addendum for financial closure as it is being considered as the final extension of the deadline.

The SC verdict also directs the concerned parties not to make a negative impact on the water supply or irrigation projects in the Karnali watershed areas as the Water Resources Act-1992 maintained that the use of water resources is a priority. Likewise, it said that the people in the area should be benefitted from the revenue generated from the project.

Upper Karnali is a large picking run-of-the-river project being developed in Karnali province in Achham, Dailekh and Surkhet districts. The initial project cost was estimated at Rs. 116 billion in 2011. As per the agreement signed with the GMR, Nepal would receive revenue of Rs. 431 billion during the concession period (25 years from the date of power generation), 108 MW free energy, 27 per cent free share to the Nepal Electricity Authority, and shares worth Rs. 1.6 billion would be sold to the local people.

According to the Investment Board Nepal, the project was expected to create 3,000 direct jobs during the construction period of five years and support 2-MW energy for the rural electrification.

Published in The Rising Nepal daily on 8 July 2023.  

SEBON authorised to issue license of a new stock exchange

 Kathmandu, Apr. 9

The Securities Board of Nepal (SEBON) can now issue license to the new capital market players including a new stock exchange, commodity exchange and new share broker companies.

The capital market regulator has now permission to exercise its authority to open licenses as the Supreme Court on Sunday canceled  a writ filed by advocate Dipak Bikram Mishra demanding the stopping of the process to open new stock exchange and add brokers. A joint bench of Justices Anil Kumar Sinha and Sushma Lata Mathema had listened to the petition on Sunday and cancelled all the writs challenging the SEBON's move.

The SEBON had announced to issue license to a new stock exchange, commodity exchange and broker company on September 18, 2022 but had to halt the entire process as the case was filed at the Supreme Court on October 21 last year.

Earlier on September 21 last year, Justice Til Prasad Shrestha had issued an interim ruling to halt the process to open new companies in the capital market sector.

The capital market regulator had amended the Securities Market Operation Regulations-2008 and the Securities Dealers Regulations-2008, in order to initiate the process of issuing licenses.

Following the amendment it had published a notice with a 30-days deadline to apply for the license of the stock and commodity exchanges and stock brokers. According to the SEBON, 46 companies – including existing one - had filed applications for stock broker's licenses, and one application was registered for stock exchange license.

Following the court decision, SEBON said that it would make the next move according to the decision of its board.

As per the amended regulations, a fully operational stock broker company should have Rs. 600 million paid up capital while limited trading broker should have Rs. 200 million capital. Likewise, the stock exchange company is required to maintain paid up capital of Rs. 3 billion.

However, the stakeholders' views are divided on opening a new stock exchange. Currently, Nepal Stock Exchange (NEPSE) is the sole share market platform for the trading of securities.

The SEBON had opened the license for the new stock exchange about 14 years ago when it had received four applications for Nepal Securities and Derivative Exchange, Kathmandu Stock Exchange, National Stock Exchange and Himalayan Stock Exchange.

Former chairmen Dr. Surbir Paudyal had opened applications for the license of a new exchange then. His successor Dr. Rewat Bahadur Karki had also tried to move the process forward but he could not make much progress amidst growing controversy and increased interest of large business houses in the country to invest in the exchange.

Currently, Nepal has one stock exchange and 50 stock brokers but has no commodity exchanges. Likewise, it has one clearing company, three credit rating companies, 19 mutual funds, one stock dealer and 234 listed companies.

According to the NEPSE, about 4.36 million Mero Share accounts, and 5.26 million demat accounts have been opened in the country. Meanwhile, 2.7 million people have participated in the initial public offerings of various companies in the current fiscal year 2022/23. 

Published in The Rising Nepal daily on 10 April 2023.  

After SC order NRB Governor Adhikari to resume office today

Kathmandu, Apr. 19

The Supreme Court on Sunday issued an interim order in the name of the Prime Minister's Office asking the latter not to implement the decision to form an inquiry committee which automatically suspended Governor of the Nepal Rastra Bank (NRB) Maha Prasad Adhikari.

In its order, the SC said that the governor should be allowed to perform his responsibility. Citing the Nepal Rastra Bank Act, 2002, it said that the committee formed to conduct an investigation into Governor Adhikari was against the law.

The interim order issued by the single bench of Justice Hari Phuyal has paved the way for Adhikari to resume his duties until the final verdict.

Governor Adhikari had filed a writ petition at the SC against his suspension.

According to the Apex Court, the issue of governor's dismissal is related to the stability of the entire economy, NRB and monetary policy.

It has summoned both the parties to the court to explain their cases.

 Meanwhile, Governor Adhikari said that he would resume his office from Wednesday.

The government had formed an inquiry committee on the governor on April 8. 

Published in The Rising Nepal daily on 20 April 2022. 

Crackdown on Babai bridge corruption

CIAA files case against 12 individuals, including lawmaker Rauniyar

Kathmandu, Oct. 5:

The Commission for the Investigation of Abuse of Authority (CIAA) on Friday filed a case against 12 individuals, including the lawmaker Hari Narayan Prasad Shah Rauniyar and government officials, involved in building a substandard bridge over the Babai River in Jabdighat of Bardiya district.

With a corruption case filed against him at the Special Court in Kathmandu, Rauniyar’s membership of the Federal Parliament has been suspended by default. He is representing Parsa district-3 in the House of Representatives.

The bridge connecting the district headquarters Gulariya and Barbardiya Municipality was collapsed immediately after its completion even before it was officially handed over to the Department of Roads (DoR).

The anti-graft body had filed the corruption case after investigating compliant that the contractors and concerned government authorities colluded to use substandard materials, and the bridge was tilted even while it was under construction.

Other accused of corruption include Rauniyar’s son and Chairman of the company Sumit Rauniyar, Chiefs of Division Road Office during the bridge construction period BhanuYadav, Rajesh Kumar Yadav and Manoj Shrestha, officiating chiefs of the office Nawa Raj K. C., engineers Dipendra Bahadur Bista, Prem Prasad Chuwai and Hari Bahadur Bista, sub-engineers Karma Tenzing Tamang, and Govinda Gaire, and owner of Everest Engineering Consultant Krishna Dev Yadav.

According to Deputy Spokesperson of the CIAA Madan Koirala, Rs. 193.2 million fine, money equivalent to the actual loss, is demanded from the Rauniyar father and son.

Similarly, Rs. 150.8 million from Tamang, Rs. 75.4 million from Khadka, Rs. 69.2 million from K. C., Rs. 31.9 million from Chuwai, Rs. 19.5 million from Gaire and Rs. 16.1 million from Bista is demanded as per the misappropriation. 

Likewise, the anti-graft body has demanded the payment of Rs. 31.4 million from Rajesh Kumar Yadav, Rs. 92.4 million from Shrestha and Rs. 19.5 million from Joshi.

Division Road Office, Nepalgunj and Pappu Construction had signed a contract to construct the bridge seven years ago.

According to the CIAA, the contractor had exhibited an utter carelessness while building the bridge. The technical officers of the government agency intentionally allowed the builder to continue with the substandard work and did not check the Quality Assurance Plan and recommended for the payment without proper inspection and quality approval.

The contractor did not build the bridge according to the design. It collapsed as it couldn’t bear the load of the bridge because the piles’ depth was not maintained as per the design and cavities were created in the piles, said the CIAA.

Published in The Rising Nepal daily on 6 October 2018. 

Choose mediation to resolve disputes, says Acting CJ

Kathmandu, Sept. 24: Acting Chief Justice of the Supreme Court Dipak Raj Joshi Sunday said that the business community should go for mediation rather than filing case in the court in order to resolve business disputes and breach of contract. 

“Resolving the business disputes and misunderstandings through mediation saves time, labour and resources. You can resolve the dispute with the help from the professionals you choose,” he said while speaking at an interaction on ‘Importance and challenges of business arbitration’ organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here today. 

Mediation or arbitration is an alternative dispute resolution mechanism where disputes are solved outside the courts with the help from the artibtrators. 

He said that the Mediation Act 2011 had ensured the representation of the private sector in the Nepal Council of Arbitration (NCA). 

“If any dispute enters the court, it may take a long time. As the time is counted as money in the business sector, it is necessary that the disputes related to business should be addressed at the earliest. In that case the NCA helps in mediation,” he said. 

According to him, mediation reduces cost and ensures confidentiality, control and compliance, and finds a long-term resolution to the disputes. 

It was accepted as an innovative concept for the alternative dispute resolution after 1970.

FNCCI President Bhawani Rana said that if the disputes were resolved through mediation or arbitration outside the court, it would save time and cost that were inherent with the process and time of the court. 

She urged one and all to take the commercial mediation as a campaign and said that the FNCCI was ready to lead the process. 

“Although arbitration is being practiced as a mechanism for dispute resolution, it cannot be as effective as expected. It’s costly and time-consuming,” she stated. 

Presenting a paper on ‘Mediation in industrial and commercial dispute: importance and challenges’, senior advocate Matrika Niraula said that the mediation could boost peace and prosperity both in the developed or developing countries. 

“No other mechanism is as good as the mediation or arbitration for relation restoration and finding permanent solution to any commercial dispute,” he said.

Gyawali files writ against the govt

Kathmandu, Jan. 16:

Former chief executive officer (CEO) of the National Reconstruction Authority (NRA) Sushil Gyawali Monday filed a lawsuit at the Supreme Court, claiming his removal from the post was illegal and ill-intended.

In the case registered at the court, he has demanded reinstatement to the post.

Gyawali has demanded that the court nullify the Cabinet’s decision to sack him from the post and appoint Dr. Govinda Raj Pokharel as the chief of the NRA through a certiorari.

The government, Office of the Prime Minister and Council of Ministers (OPMCM), the Cabinet, Prime Minister and Dr. Pokharel are the defendants in the writ.

“I was appointed as per Article 11(3) of the NRA Act 2015, which maintains that the CEO is appointed for a 5-year term,” Gyawali said in his 14-page-long writ-application. “I had been fulfilling the duties set by the law.”

He has claimed the reconstruction works were moving satisfactorily, and the government and the donor agencies had appreciated the progress made by the NRA.

He said that the government removed him from the post without studying his twice-furnished clarifications.

“The government made a case that I was unable to forge coordination among the government agencies for the reconstruction, which is not the case, as I was continuously communicating with the concerned ministries and other stakeholders,” reads the writ.

Gyawali has mentioned that his removal was not related to his work efficiency but an implementation of the pre-agreement and plan of the defendants.

The writ reads that the NRA, under the leadership of Gyawali, identified 626,036 quake-affected families who were eligible for the house reconstruction grant, signed grant agreements with 544,996 households and deposited the first installment of the grant money - Rs. 50,000 - in the bank accounts of 459,886 families.

“After the government decided to raise the grant money to Rs. 300,000 in September last year, the NRA had submitted its action plan to the Cabinet to increase the second and third installments amount to Rs. 150,000 and Rs. 100,000 from the earlier Rs. 80,000 and Rs. 70,000 respectively. But the Cabinet had approved the action plan on the very day it decided to seek a clarification from me about the delay in distributing the house reconstruction grant to the quake-victims,” reads the writ.

Likewise, Gyawali said that the NRA Steering Committee meeting in the last week of October had directed the Ministry of General Administration to provide the required human resources within 15 days. But the ministry has not supplied the manpower required by the NRA so far.

A Cabinet meeting on January 11 had given Gyawali marching orders, accusing him of inefficiency in expediting the reconstruction works as per the government’s expectations, and had appointed Dr. Pokharel as the chief of the reconstruction body.

Stunned at being fired from the NRA, Gyawali said, "The unjust decision of the Cabinet has forced me to seek legal remedies. It is necessary to ensure justice to the quake-affected people by expediting the reconstruction works."

The erstwhile Sushil Koirala-led government had appointed Pokharel, then the incumbent vice-chairmen of the National Planning Commission, as the CEO of the NRA about one-and- a-half years ago.

But he had to leave office as the government failed to get the approval of the parliament on the Reconstruction Ordinance.

The government had twice sought clarification from Gyawali, blaming him for his inability to mobilise the required staff for the post-quake reconstruction, implement the instructions of the NRA Steering Committee, poor coordination with the government agencies and delay in the distribution of the house reconstruction grant.

He had submitted his clarifications to the government on January 4 and 8.