Kathmandu, February 5

After a hiatus of almost a year, Ajeya Raj Sumargi, chairman of Muktishree Private Ltd, has once again started seeking government permission to bring in foreign funds, although around Rs three billion that he had previously tried to remit into the country remains locked up in two domestic banks due to his inability to furnish necessary documents.

Last week, the Department of Industry (DoI), which provides approval to bring in foreign direct investment, wrote to Nepal Rastra Bank (NRB) seeking central bank’s recommendation on a proposal made by one of Sumargi’s firms to bring in a loan of $65 million.

Nepal Satellite Telecom (NST), a company under Muktishree, is getting credit from Airbell Services Ltd of Cyprus at an interest rate of five per cent per annum, says the document seen by The Himalayan Times. NST had initially sought permission to bring in the fund more than a year ago.

Based on this request, the DoI, on October 30, 2014, asked NRB — the authority whose recommendation is necessary to bring in funds from abroad — whether permission should be granted.

However, NRB denied to issue permission citing NST had failed to furnish all the documents.

Referring to NRB’s response, the DoI, on February 12, 2015, wrote to NST citing completion of all the paper works was a must prior to getting the clearance.

“Since then some of the documents have been submitted. But some are still missing,” a reliable source said.

When the matter was again pursued by the DoI recently, NRB, on December 2, 2015, wrote to the Department of Industry demanding some specific documents.

Then on December 31, 2015, NST wrote to the DoI stating it would submit the remaining documents directly to NRB.

But sources said NST has not responded till date.

NRB has said it does not prevent Nepalis from getting funds from abroad if they fulfil all conditions. This includes the condition on interest rate, which should not be more than five per cent plus Libor.

“So, Nepalis seeking expeditious service should submit all necessary documents. This is because we are committed to combating financial crimes such as money laundering and terror financing,” an NRB official said.

NST had previously sought government permission to bring in credit of around $45 million from Zhodar Investment Company based in British Virgin Islands and around $65 million from Cyprus-based Airbell Services Ltd.

Of these funds, around $12 million has entered the country from British Virgin Islands and another $19 million has come into the country from Cyprus, sources said. But NRB has not allowed banks that received the funds to release them citing lack of proper documents.