NITC Server Procurement Case: Special Court Acquits Max International and Top Officials

15th July 2026, Kathmandu

In a significant judicial development, Nepal’s Special Court has acquitted all defendants, including Max International Pvt. Ltd. and its CEO, Akbar Hussain, in a high-profile corruption case involving the procurement of servers for the National Information Technology Center (NITC).

Special Court Acquits Max International

The bench ruled that the prosecution failed to substantiate the corruption charges levied by the Commission for the Investigation of Abuse of Authority (CIAA).

The decision brings a dramatic conclusion to a legal battle that centered on alleged financial irregularities, public procurement compliance, and international banking transactions involving top Nepalese IT officials.

The Special Court’s Verdict: A Comprehensive Breakdown

The Special Court delivered its summary judgment through a bench comprising Court Chairman Sudarshan Dev Bhatta and members Hemanta Rawal and Dilli Ratna Shrestha.

The court concluded that the evidence presented by the anti-graft body could not establish the guilt of the accused individuals and corporate entities.

Legal Compliance in Public Procurement

Central to the defense’s argument and the court’s subsequent findings was the adherence to existing statutory frameworks. The court noted that the procurement process initiated by the NITC during the fiscal year 2018/2019 (A.F. 2075/076) under bid invitation number IFB No. NITC/G/NCB-6-075/076 was conducted entirely in accordance with the Public Procurement Act, 2063.

The bench found no procedural deviations or illegal manipulations in the tendering, evaluation, or awarding phases of the contract to Max International Pvt. Ltd.

Verification of Server Installation and Functionality

A critical turning point in the case was the evaluation of the technical deployment. The Special Court had previously ordered an independent expert inspection of the infrastructure.

The expert’s field report confirmed that:

• The RISC (Reduced Instruction Set Computer) and HCIC (Hyper-Converged Infrastructure) servers supplied by Max International met the exact technical specifications outlined in the original bidding documents.

• The equipment was successfully installed at the designated government data centers.

• The infrastructure remains fully functional and actively supports state data operations.

Resolution of the Training and Configuration Dispute

One of the core pillars of the CIAA’s prosecution was that the government was billed for training and configuration services that were either fabricated or non-existent. However, the court’s examination of the case files debunked these assertions.

The judicial review confirmed that training and one-time configuration services were provided at Nepal’s Government Integrated Data Center (GIDC) and the Disaster Recovery Center (DRC).

The training was conducted on-site during the installation phase by certified trainers from the Original Equipment Manufacturer (OEM), adhering strictly to the terms of the contract. The court highlighted that the case file contained explicit documentation, including:

1. The names of the certified OEM trainers.

2. The names of the participating NITC technical staff.

3. The exact duration and schedule of the training sessions.

Validity of Warranty and Support Payments

The court established that because the hardware was verified to be of high quality, properly installed, and operational, the subsequent disbursements made to the supplier for warranty and on-site support were legally justified. The financial transactions aligned with the contractual obligations, negating the prosecution’s claim of arbitrary or illegal payouts.

Understanding the CIAA’s Original Allegations

The Commission for the Investigation of Abuse of Authority (CIAA) initially filed the lawsuit at the Special Court on May 18, 2025 (5 Jestha 2082 B.S.). The anti-graft body alleged that the entire procurement process was cloaked in collusion, leading to inflated costs and a direct financial loss to the Nepalese government.

Total Estimated Project Cost: NPR 26,29,53,335.33

Alleged Non-Existent/Inflated Billing (Excluding VAT)

Training & Installation: NPR 2,65,00,000.00

3-Year Warranty & Support: NPR 3,14,00,000.00
…………………………………………………………………………………..
Total Alleged Financial Loss: NPR 5,79,00,000.00

According to the charge sheet, the NITC had set a total cost estimate of NPR 26,29,53,335.33 for the server acquisition. Max International submitted its invoice on June 19, 2019 (4 Asar 2076 B.S.).

The CIAA flagged two specific components of the invoice, claiming they were fraudulent or unnecessary titles created solely to siphon public funds:

Training and Installation: NPR 2.65 Crore (excluding VAT)

Three-Year Warranty and On-Site Support: NPR 3.14 Crore (excluding VAT)

The prosecution argued that these services were never rendered or were severely overvalued, leading to a calculated loss of NPR 5.79 Crore to the state treasury.

The Singapore Bank Account Controversy

Beyond the local contract invoicing, the CIAA’s investigation introduced an international financial angle. The prosecution claimed that BancTec Pte Ltd, a Singapore-based entity responsible for supplying the hardware to Max International, had transferred USD 79,640 into a United Overseas Bank (UOB) account in Singapore.

This account allegedly belonged to Sunil Paudel, the then-Executive Director of the NITC. The CIAA asserted this transaction constituted an illicit kickback linked directly to the server contract award.

List of Acquitted Individuals and Entities

The omnibus acquittal by the Special Court cleared all corporate entities and public officials indicted in the case. The individuals vindicated by Monday’s ruling include:

Max International Pvt. Ltd. (The primary technology supplier)

Akbar Hussain (CEO of Max International)

Sunil Paudel (Then-Executive Director of the NITC)

Ramesh Pokharel (Then-Assistant Director of the NITC)

Ram Sharan Gayak (Computer Engineer at the NITC)

Nim Bahadur Oli (Then-Accounting Officer at the NITC)

The court stated that while the summary judgment has been issued to clear the defendants, the compilation of the full, detailed text of the verdict (Faisala ko Purnapath) will take some time to be officially released.

Broader Implications for Nepalese Public Procurement

The acquittal underscores a recurring tension in Nepal’s public sector between anti-corruption oversight and the execution of large-scale information technology projects.

Clarity in Technical Standards

The case highlights the critical importance of utilizing independent, third-party technical experts during judicial reviews of complex IT infrastructure. By relying on an objective field assessment of the GIDC and DRC setups, the court established a precedent where verifiable technical performance and physical audits outweigh circumstantial institutional suspicions.

Documentation as a Legal Shield

For corporate contractors and public officials operating within the framework of the Public Procurement Act, this case serves as a textbook example of the value of rigorous documentation.

The presence of exact logs ranging from OEM training certificates to detailed lists of government participants proved to be the decisive factor in dismantling the prosecution’s claims of ghost services.

As the tech sector and government departments await the full text of the verdict, the ruling provides immediate legal relief to the leadership of Max International and the ex-officials of the NITC, drawing a line under a long period of scrutiny over the state’s central data infrastructure procurement.

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