Nepal Investment Mega Bank auctions Smart Telecom’s collateral to recover loans

Kathmandu – It has been revealed that a consortium of banks led by Nepal Investment Mega Bank (NIMB) has auctioned off equipment and materials held as collateral from debtor Smart Telecom Pvt. Ltd. to recover outstanding loans.

The bank initiated the loan recovery process for Smart Telecom under Section 57 (1) of the Banks and Financial Institutions Act, 2073.

Since 2074, Smart Telecom had been provided with various banking facilities through a consortium led by Prime Commercial Bank.

To secure the loan, the company’s telecommunications equipment was registered as collateral in favor of the bank under the ‘Secured Transactions Act, 2063’. After a prolonged period of non-payment of principal and interest, the bank issued a 35-day public notice last Shrawan to begin the auction process.

Among the bids submitted for the auction, Ncell offered the highest amount of Rs. 4.6 billion (4600 million). Other competitors, Transgate Tech and Professional Business Network, proposed Rs. 445 million and Rs. 425 million, respectively.

Ncell’s bid exceeded the audited ‘book value’ of Smart Telecom for the fiscal year 2078/79, which was Rs. 3.95 billion, leading the bank to accept this bid.

After Ncell deposited the amount within the stipulated time, Smart Telecom’s loan file was completely closed on 13 October 2025. Although the Nepal Telecommunications Authority claimed under the asset management regulations, the bank clarified that it had already established its legal rights before the authority could take control of the company.

According to the established precedent of the Supreme Court, the bank’s first right over the collateral was upheld, concluding the auction process on this basis.