Alleged Involvement of Deuba Family in Telecom Billing Contracts – Is the Case Stalled Due to Lack of Evidence from the Commission?
March 8, Kathmandu. The Property Laundering Investigation Department obtained arrest warrants on Wednesday from the District Court in Kathmandu against Sher Bahadur Deuba and his wife Dr. Arju Rana. The probe, initiated on suspicions of illegal wealth accumulation, will investigate various decisions and activities made during Deuba’s tenure in power, along with associated files.
Furthermore, if illegal wealth accumulation is confirmed, the Commission for the Investigation of Abuse of Authority (CIAA) may conduct a separate corruption investigation.
Incident 1
Among several issues linked to Deuba, high-ranking officials from investigative agencies recently discussed the Nepal Telecom billing maintenance contract. It appears members of Deuba’s family were involved in this contract in some manner.
Questioning the billing maintenance contract, the CIAA filed corruption charges on May 8, 2025 (Jestha 25, 2082 BS) against 18 individuals. Allegations included political pressure and collusion that extended the old contract rather than initiating a new billing system tender process. The CIAA concluded that corruption amounting to NPR 334.8 million had occurred.
The CIAA prosecuted former Nepal Telecom managing directors Sunil Paudel and Sangeeta Pahadi, among others. However, officials on the policy-making board who decided the maintenance contract were not implicated in corruption allegations.
Incident 2
According to CIAA-affiliated officials, when a plan emerged to extend the old billing system maintenance contract rather than adopting a new system, some Nepal Telecom employees were reluctant to advance the file. Subsequently, managing director Sunil Paudel summoned them and directed that files of high political interest should not be delayed.
Since former Prime Minister Sher Bahadur Deuba’s wife, Dr. Arju Rana Deuba, and their son Jayveer expressed interest in the file, Paudel instructed that immediate decisions be made.
A Nepal Telecom employee secretly recorded this discussion and handed over the audio to the CIAA. However, this detail was not mentioned in the CIAA’s charge sheet.
Incident 3
The Property Laundering Investigation Department, Central Investigation Bureau of Nepal Police, Ministry of Home Affairs officials, and others were briefed regarding irregularities in the Nepal Telecom billing contract.
According to disclosures by some Nepal Telecom employees and telecom industry businessmen, payments made to the maintenance contractor allegedly reached political levels.
After some IT businessmen based in Singapore submitted this information to the CIAA, citing the absence of investigations, they sought the attention of other agencies.
Recently, a CIAA official stated that complaints frequently arise linking Deuba’s family to the Nepal Telecom billing contract.
“When everyone claims to possess details and proof related to the transaction at the CIAA, we invited them to review the files,” the official said. “Yet, no one has provided specifics on the accounts, locations, or methods of these transactions.”
Bikal, Sunil, and the Deuba Family
Vikal Paudel, an IT contractor who gained access to Singha Durbar through political influence, secured appointments based on this leverage. During this time, he served a long tenure as executive director of the Security Printing Press while his associate Sunil Paudel was appointed Nepal Telecom managing director from the National Information Technology Center at Singha Durbar.
The CIAA arrested both Vikal Paudel and Sunil Paudel on January 24, 2024 (Magh 10, 2080 BS), based on complaints of illegal property acquisition related to contracts and appointments in the IT sector.
The CIAA seized their mobile phones and gadgets and conducted investigations.
During the probe, suspicious contacts with senior politicians and their relatives—including the Deuba family—were revealed. Sources affiliated with the CIAA reported, “Unusual communications surfaced between them and several individuals including the Deuba family.”
According to sources closely involved in the IT investigations, Vikal knew some relatives connected to Deuba’s in-laws. Using these contacts, Vikal fostered relationships with members of the Deuba family. Notably, Jayveer, Sher Bahadur’s son, played a role in facilitating Sunil’s appointment as Nepal Telecom managing director.
Upon discovering suspicious conversations during the investigation, the CIAA corresponded with the Singaporean government to gather evidence. As per the mutual legal assistance process, information exchange took place through the Ministry of Law’s focal person.
“It appears that discussions to extend the billing system contract were settled before Sunil Paudel was appointed managing director,” the source said. “Once appointed, he approved extending the problematic billing system—already under revenue leakage and scrutiny—for six additional years.”
At the time of Sunil Paudel’s appointment, then Communications Minister Gyanendra Bahadur Karki and Secretary Dr. Baikuntha Aryal initiated changes to appointment directives. Later, the Deuba government formalized these changes through cabinet approval, which favored Sunil’s appointment.
After becoming managing director, in mid-January 2024 (Poush 2080 BS), Nepal Telecom extended the existing billing system’s contract by six years instead of adopting a new system. According to CIAA sources, “Dialogues and communications between the Deuba family and Sunil-Vikal intensified thereafter.”
Jayveer’s Interest in Billing
Nepal Telecom has been using the current billing system since 2012. Although the system should have been replaced after 8-9 years, it continued for over a decade, leading to issues such as call failures, service interruptions, and abrupt disconnections.
On July 20, 2021 (Ashad 4, 2078 BS), Nepal Telecom’s board decided to initiate tendering for a new billing system. Investigations by the Ministry of Communications two years earlier had revealed revenue leakage through the billing system and recommended moving to a new system.
Repeated complaints about revenue leaks and service disruption led the board to instruct management to swiftly transition to a modern billing system. The board also resolved that the outdated system should not be extended under maintenance contracts but rather subjected to new tender processes.
After a management change at Nepal Telecom, efforts were made to maintain the old billing system. This plan met opposition from board members Phanindra Gautam (joint secretary at the Ministry of Law) and Ambika Paudel, representing general shareholders. Gautam even threatened to submit a dissenting opinion if a new tender was not pursued.
To prevent obstacles to the decision, then chief secretary Shankardas Bairagi pressured Gautam not to obstruct the extension process. When Gautam held firm, he was recalled and replaced by another joint secretary, Sushil Koirala.
According to sources, chief secretary Bairagi had requested other board members’ cooperation, highlighting the Deuba family’s interest in Nepal Telecom’s billing. Following board member turnover, the old billing contract was renewed.
Alongside Gautam, another board member, Ambikaprasad Paudel, voiced opposition to extending the old contract and subsequently abstained from meetings when continuation was decided.
On January 8, 2023 (Poush 24, 2079 BS), a four-year annual maintenance contract (AMC) was signed with Asia Info, the company providing billing system services.
A senior Nepal Telecom official said that technical staff raised concerns with Sunil Paudel about the legality of the contract and the risk of CIAA scrutiny.
Paudel assured them that arrangements had been settled at higher levels and instructed them to proceed as directed. Telecom sources claim Sunil told them, “I have arranged matters with Jayveer sir and a secretary; there is no need to worry.” The audio recording of this conversation reportedly reached the CIAA.
A senior technical official at Nepal Telecom stated that Jayveer frequently called several senior officials involved in the board and contract process to express continued interest in expediting the stalled billing contract file.
Ultimately, a maintenance contract nearly worth NPR 315 million was awarded for six years without competition. Upon noticing unusual details, the CIAA began investigations.
On May 8, 2025 (Jestha 25, 2082 BS), corruption cases alleging irregularities amounting to NPR 334.8 million were filed against Sunil Paudel, Sangeeta Pahadi, and others. The case against 18 accused, including the Chinese company Asia Info, remains under consideration at the Special Court.
Jayveer’s Response: ‘Contract Fully Compliant’
Following reports linking the Deuba family, especially Jayveer, to irregularities in Nepal Telecom’s billing, multiple attempts were made to contact Jayveer in April 2024 (Baisakh 2081 BS).
Though Jayveer did not communicate directly, he sent his response via an official in former Prime Minister Sher Bahadur Deuba’s secretariat.
According to Jayveer, he was not involved in any contract, transaction, or deal related to Nepal Telecom. He claimed that Vikal and Sunil were close to the then UML minister Gokul Baskota rather than the Nepali Congress and were controlled by them.
Nevertheless, Jayveer defended the billing maintenance contract. “There was no irregularity in such a contract,” an official from Deuba’s secretariat quoted him as saying. “The Asia Info company that received the contract refused to accept it for only one year, leading to the six-year maintenance contract.”
The official from Sher Bahadur Deuba’s secretariat has been in contact recently but requested not to be linked with this past matter as they are no longer serving in the secretariat.
