The dramatic twits to the story has entered into a climax
where the international Telecom organization AXIATA has bid to search for international
arbitration for Settlement of Investment Dispute. The Malaysia-based Axiata,
the parent company of Ncell, made announcement in the name of its shareholders
that Axiata Investments (UK) Limited with the condition of claiming that Nepal government’s
claim of capital gains tax imposed is against the Bilateral Investment Treaty
between Nepal and the United Kingdom.
Making it public the Axiata announced its shareholders name with major shareholder to be Axiata Investments (UK) Limited and Ncell Private Limited have filed a Request for Arbitration with the International Centre for the Settlement of Investment Disputes (ICSID) pursuant to the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Nepal for the Promotion and Protection of Investments.
The Malaysian company wholly owns the Axiata UK while it has 80 percent stake in Ncell indirectly.
As per the announcement of the Axiata, the two subsidiaries made the request, claiming that Nepal’s conduct with regards to the capital gains tax imposed on Axita and Ncell contravenes the international law obligations under the Bilateral Investment Treaty between the two countries.
“The claims relate to Nepal’s conduct in imposing capital gains tax in connection with Axiata UK’s acquisition of 100 percent of the shares of Reynolds Holding Limited, which owns 80 percent of the shares of Ncell,” the announcement reads. The company said Nepal government has also been notified about the request.
