29th November 2024, Kathmandu
Kulman Ghising, Managing Director of Nepal Electricity Authority (NEA), has clarified that the bank accounts of industries will not be frozen, despite his letter to Nepal Rastra Bank regarding unpaid dues for the dedicated trunkline service.
Ghising’s Freeze Industrial Accounts
His letter, sent on Wednesday, confirmed that freezing the accounts will not be mandatory or enforced.
Legal Grounds for Freezing Accounts
In his letter, Ghising explained that there is no legal basis for freezing the accounts of industries, according to Nepal Rastra Bank’s Bank Account Freezing and Release Regulations, 2081. These regulations specify that the freezing of accounts requires a solid legal framework and only authorized authorities can make such requests under specific laws.
Who Can Request Account Freezing?
To freeze a bank account, the request must come from certain authorized organizations, such as the Commission for the Investigation of Abuse of Authority (CIAA), Nepal Police, the Department of Revenue Investigation, or the Money Laundering Department.
These bodies can request the freezing or release of accounts as per the laws in place.
Additionally, the regulations state that when freezing an account for a company or firm, the request must include essential details like the company’s official name, registration number, address, and permanent account number (PAN).
However, only certain government agencies and legal bodies can take this action under the law.
NEA’s Request Lacks Legal Foundation
The NEA, based on its own laws and regulations, does not have the legal provision to directly request the freezing of bank accounts. This means Ghising’s letter to Nepal Rastra Bank does not have the legal authority to enforce account freezes.
Nepal Rastra Bank’s Response
A spokesperson for Nepal Rastra Bank, Ramu Poudel, stated that the central bank has not yet received any letter from the NEA. Once they receive the letter, the bank will assess the situation and determine the appropriate course of action.
Background: Why NEA Requested Account Freezing
Kulman Ghising previously sent a letter to Nepal Rastra Bank asking for the freezing of bank accounts belonging to 34 industries that have not paid their dues for the dedicated trunkline service. These industries have outstanding payments, and the total dues remain unpaid.
Ghising took this step after the Electricity Regulation Commission and NEA’s Board advised against cutting off the power supply, opting instead for alternative measures to recover the dues.
In his letter, Ghising recommended freezing the bank accounts of the companies involved. He also suggested that industry investors or company directors who have not settled the dues should be restricted from issuing shares, transferring rights, or offering collateral until the dues were cleared.
He asked for cooperation from the Company Registrar’s Office and Securities Board to help recover the unpaid dues.
Conclusion
Although Kulman Ghising sent a letter to Nepal Rastra Bank requesting the freezing of industrial accounts, the process will not move forward due to the lack of legal support for such actions by the NEA.
Nepal Rastra Bank is yet to receive the official communication and will discuss what can be done once the letter is reviewed. The situation remains unresolved for now, pending further action from the central bank.
For more: Ghising’s Freeze Industrial Accounts