The Axiata Group had filed a case at the International Centre for Settlement of Investment Disputes in May 2019, claiming damages worth around Rs66 billion.
Axiata said the payment was made under protest and will seek remedies including restitution of sums already paid in the international arbitration proceedings.
Nepal has signed six bilateral investment treaties that can be described as first generation i.e. a template of BITs that were championed by investor-friendly Western European countries
The ICSID had issued an interim order directing the government not to take any steps to enforce its decision to collect the outstanding capital gains tax.
A US-based international court issues interim order directing the Nepal government not to impose capital gains tax on Ncell buyout deal for the time being.
Axiata Group’s UK subsidiary and Nepal mobile unit filed a request for arbitration with the International Centre for the Settlement of Investment Disputes, regarding a capital gains tax bill levied by Nepali authorities.