18th September 2025, Kathmandu
The Finance Ministry of Nepal has issued a directive that Sharad Ojha should not resume his duties as Chairman of the Nepal Insurance Authority (NIA), despite his attempts to do so following a court’s interim order.
NIA Bars Sharad Ojha
The Finance Ministry of Nepal has issued a directive that Sharad Ojha should not resume his duties as Chairman of the Nepal Insurance Authority (NIA), despite his attempts to do so following a court’s interim order. This decision stems from administrative and legal complexities surrounding his dismissal and subsequent efforts to return to office. The Ministry of Finance (MoF), under Minister Rameshwar Khanal, has taken this action to maintain the status quo and ensure administrative order until a final judicial decision is reached.
Background and Conflicting Directives
The conflict began when Sharad Ojha was removed from his position as chairman by the previous government on Bhadra 2, 2082 (August 18, 2025). In response, Ojha filed a writ petition in the Supreme Court, challenging his dismissal. The court issued a short-term interim order on September 8, 2025, which, according to Ojha, temporarily stayed the government’s decision to remove him. Relying on this order, he returned to the Insurance Authority on the previous Tuesday and attempted to resume his duties.
However, the Finance Ministry’s directive is based on its interpretation of the court order and the need for procedural correctness. The Ministry questioned the legality and authenticity of the order under which Ojha returned, stating that there was no clear official communication from the court permitting his immediate reinstatement. The Ministry’s spokesperson, Tank Pandey, confirmed that the directive was issued to prevent a unilateral assumption of authority and maintain order within the regulatory body. This highlights a complex legal and administrative situation where a court’s interim order, which is not a final judgment, is being contested by a government ministry. The Supreme Court’s order on September 8, 2025, while allowing Ojha to continue his work as chairman, also called for both parties to present their arguments in a subsequent hearing.
Rationale and Implications
The Ministry’s decision is a preventive measure aimed at avoiding administrative chaos and potential legal disputes within the Nepal Insurance Authority. Finance Minister Rameshwar Khanal reportedly convened a meeting with key officials, including Revenue Secretary Sevanta Pokharel, who had been appointed as acting chairman after Ojha’s dismissal. This shows the government’s concern for maintaining a functional regulatory body while the legal case is sub judice. The ministry’s position is that Ojha’s return without a clear and verifiable legal basis could compromise the governance and administration of the NIA. Furthermore, a new appointment process for the NIA chairman had already begun, with a seven-day public notice issued on August 30, 2025, inviting applications. Over 14 candidates have applied for the position, and allowing Ojha to resume his role could create confusion and disrupt this ongoing process.
The legal battle over Ojha’s chairmanship is part of a broader context. Ojha’s appointment on February 24, 2025, had been controversial from the start, with allegations that he lacked the required professional experience and had submitted fraudulent documents to secure the position. A government probe committee was formed to investigate these allegations, and it was on the recommendation of this committee that he was initially dismissed. The Supreme Court had previously, on August 4, 2025, denied an interim order in his favor, so the subsequent order on September 8 was a notable, if temporary, change.
Next Steps and Broader Significance
The ultimate outcome of this dispute hinges on the Supreme Court’s final decision. A hearing has been scheduled for Ashoj 26, 2082 (October 12, 2025), to review the interim order and determine whether Ojha’s reinstatement should be made permanent or his dismissal upheld. Until this hearing, the Ministry’s directive remains in effect, and the selection process for a new chairman will continue.
This incident is a prime example of the complex and sometimes contentious interplay between the executive and judicial branches of government in Nepal. It underscores the challenges in ensuring administrative stability and legal compliance in high-level public appointments. For the insurance sector, which has recently faced significant challenges from an influx of claims due to civil unrest, leadership continuity is crucial. The current uncertainty at the top of its regulatory body could add another layer of risk, affecting the overall stability and public perception of the industry. The incident highlights the need for a transparent and legally robust appointment process to ensure that regulatory institutions can operate with credibility and accountability. The final court ruling will not only decide Ojha’s fate but also set a precedent for how such disputes are handled in the future.
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