<figure><img width="1500" height="1149" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108121136/636a40019c7e80680e04a5f8jpeg.jpg" alt=""/><figcaption>Illustration: BHANU BHATTARAI</figcaption></figure>The spate of investment treaty arbitrations that have inundated developing countries in recent times has now reached Nepal. At stake is a Rs39.06 billion tax imposed by the Large Taxpayers Office (LTO) on <a href="https://www.nepalitimes.com/opinion/ncell-ruling-opens-a-can-of-worms/" target="_blank" rel="noopener">Ncell</a>, following a decision of the Supreme Court.Ncell subsequently contested the LTO tax assessment, submitting that it is liable to pay only Rs14.5 billion. It also obtained an interlocutory interim stay from the Supreme Court on these grounds.The initiation of investment treaty arbitration by Axiata Investment UK Ltd (Axiata UK) through an intermediate special purpose vehicle not directly investing in Nepal, while challenging the same action before the Supreme Court of Nepal and bypassing other statutory remedies, raises several questions as to the use of investment treaty arbitration and the International Centre for Settlement of Investment Disputes (ICSID).Read also:<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/opinion/ncell-ruling-opens-a-can-of-worms/" target="_blank" rel="noopener">Ncell ruling opens a can of worms</a>, Semanta Dahal<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/here-now/supreme-court-weighs-in-on-ncell-tax-dispute/" target="_blank" rel="noopener">Supreme Court weights in on Ncell tax dispute</a>, Sharad OjhaAxiata UK filed a request for arbitration before the ICSID against the Government of Nepal regarding the capital gains tax levied by Nepal’s tax authorities on the indirect transfer to Axiata UK of an 80% stake in <a href="https://www.nepalitimes.com/here-now/supreme-court-weighs-in-on-ncell-tax-dispute/" target="_blank" rel="noopener">Ncell</a> through the sale of Reynolds Holdings Limited, by the previous foreign investor, TeliaSonera Norway Nepal Holdings AS to Axiata UK.The arbitration was initiated on the basis of the bilateral investment treaty between the governments of Nepal and the UK (UK-Nepal BIT) on 2 March 1993. In parallel, Ncell has also initiated proceedings before the Supreme Court of Nepal challenging the CGT assessment by the tax authorities.In doing so, Ncell and its indirect shareholder Axiata UK have not availed statutory remedies otherwise available under Nepal's law to challenge the assessment. This presents the government with some credible arguments to resist the investment treaty claims.First, it is doubtful whether Axiata UK’s indirect acquisition of Ncell’s shares qualifies as an ‘investment’ in terms of Article 1(a) read with Article 8(1) of the UK-Nepal BIT. Axiata UK’s role in the transaction is limited to its acquisition of Reynolds, which owns 80% of the shares of Ncell.Moreover, Axiata UK is a wholly owned subsidiary of Malaysia-based Axiata Group Berhad. The Government of Nepal could argue that Axiata UK Ltd has no real interest in the transaction and is merely being used as a vehicle to bypass the jurisdictional hurdle of the UK-Nepal BIT.Previous investment treaty arbitrations have found that a mere passive investor, such as a company which conducts no business of its own but merely holds shares in a company incorporated in the host state, will not be able to invoke the jurisdiction under a bilateral investment treaty.It could be argued that Axiata UK is required to exhaust local remedies before resorting to arbitration under the UK-Nepal BIT. The ICSID Convention expressly provides that if a dispute arises, parties may refer the dispute to arbitration if they are unable to resolve it within three months ‘through pursuit of local remedies or otherwise’. By its decision on 6 February, the Supreme Court held that capital gains tax could be levied on the transaction. Thereafter, the capital gains tax was computed by the assessing authority, and this assessment was also challenged by Ncell by way of a writ petition before the Supreme Court on 21 April. Subsequently, Axiata UK submitted its request for arbitration, as announced on 26 April.The sequence of events shows that the decision to invoke arbitration under the UK-Nepal BIT was made immediately pursuant to the calculation of capital gains tax liability, instead of pursuing local remedies to challenge the assessment. The strategy of ignoring statutory remedies and instead relying on constitutional and investment treaty protections appears to have been motivated by the desire to avoid the requirement of depositing one-third of the disputed tax liability as a condition to challenge the assessment under Nepali tax laws.The government can now argue that the invocation of arbitration is against the letter and spirit of the UK-Nepal BIT and the ICSID Convention.Ncell’s present challenge before the Supreme Court is limited to the amount of tax, and Ncell has itself admitted a portion of the liability. It is questionable whether a dispute on the quantum of tax can be referred to arbitration under the UK-Nepal BIT.In matters involving taxation, a claim for expropriation will ordinarily involve showing that the tax liability in question has been imposed as part of a designed and deliberate set of measures to deprive the investor of the value of their investment. Such claims in previous cases have typically involved retrospective legislation where local tax law has been applied in a patently arbitrary and discriminatory manner by the host state. Establishing such a high threshold may be difficult for Axiata UK.The Government of Nepal can now consider all options available, including raising preliminary objections on jurisdiction under Rule 41 of the ICSID Arbitration Rules and Article 41 of the ICSID Convention, at the earliest.Semanta Dahal and Vikas Mahendra are lawyers and partners at Abhinawa Law Chambers (Nepal) and Keystone Partners (India).

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Nepal has strong case on Ncell arbitration

<img width="1050" height="696" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25c89c7e80680e0439dfjpeg.jpg" alt=""/>The Supreme Court’s verdict on Wednesday requiring the Malaysian company Axiata and Ncell Nepal to pay billions capital gains tax on their purchase of Nepal’s largest private telecom provider Ncell will end a <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/06/03/taxing-time-for-ncell/" target="_blank" rel="noopener">controversy</a> that has dragged on for three years, but is expected to further chill <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Nepal’s foreign investment climate</a>.A full bench of the apex court headed by Chief Justice Cholendra Shumsher Rana decided after two days of hearings that Reynolds Holdings Ltd was a shell company and the real owner of <a href="http://archive.nepalitimes.com/blogs/thebrief/2016/05/16/the-tax-in-question/" target="_blank" rel="noopener">Ncell</a> was <a href="http://archive.nepalitimes.com/blogs/thebrief/2015/12/21/axiata-buys-80-stake-in-ncell/comment-page-1/" target="_blank" rel="noopener">Axiata</a>, and it was liable to pay the tax along with Ncell Nepal.Justices Rana, Mira Khadka, Bishwambhar Prasad Shrestha, Ananda Mohan Bhattarai and Tanka Bahadur Moktan were deliberating on a public interest litigation writ filed by former secretary and advocate Dwarika Nath Dhungel and six others that Ncell Nepal and Axiata were responsible to pay capital gains tax when they bought the company from the <a href="http://archive.nepalitimes.com/article/interview/Nepal-very,1104" target="_blank" rel="noopener">Swedish-Finnish telecom company TeliaSonera</a> in 2016.When TeliaSonera sold Reynolds Holdings shares in Ncell to Axiata for over $1 billion, Nepal’s Large Tax-payers’ Office had said Reynolds owed the government Rs35 billion in taxes and demanded it pay the amount and fines to a total of Rs61 billion.Ncell Nepal refused to pay that full amount, and transferred only Rs21 billion capital gains tax. After this, the writ was filed, and the Supreme Court on Wednesday also rejected a case filed by Ncell.The case became controversial after two foreign investors traded ownership of a Nepal-based telecom company. Since TeliaSonera has already left Nepal, the Court found that the buyer is liable to pay capital gains tax if the seller did not.Senior advocate Surendra Bhandari says that it is international practice that the seller has to pay capital gains tax on any sale of assets, but says the Supreme Court is right in assessing that the seller was allowed to leave the country without paying tax and to put the onus on the buyer.Wednesday decision now sets a precedent for the buyer to also be responsible for paying capital gains tax. Officials at the Internal Revenue Service say that although the country’s treasury will benefit from the tax payment, there has been no investigation into why the seller was allowed to get away without paying taxes, and fears that the case will have negative repercussions on future investment.Eighty percent of Ncell’s ownership is with Reylonds Holding registered in the British Virgin Islands and 20% with Niraj Govinda Shrestha. Ncell’s main promoter was Reynolds Holding through TeliaSonera’s office in Norway.According to Nepal’s tax laws, TeliaSonera’s sale of Ncell to Axiata had a capital gains tax liability of Rs35 billion. Axiata had written to the Internal Revenue Office before the sale if it was liable to pay capital gains tax in Nepal, but there was no reply from its director at the time, Chudamani Sharma.After that the tax controversy got mired in politics, with various party leaders and former CIAA chief <a href="https://archive.nepalitimes.com/regular-columns/Legalese/parliament-and-court-plays,822" target="_blank" rel="noopener">Lokman Singh Karki</a> vying for underhand deals that would let the guilty go free. Says advocate Bhandari: “The Supreme Court decision seems to be driven by the logic that any buyer should first inquire about the liabilities of the seller before any purchase.”However, other retired revenue officials say it is unfair to blame Axiata, and ask it to pay capital gains tax that should have been paid by TeliaSonera. He says the really guilty party here are the politicians who allowed TeliaSonera to leave without paying taxes, and this will dim Nepal’s investment climate just before an Investment Summit planned for next month, and after <a href="https://www.nepalitimes.com/here-now/to-davos-with-hammer-and-sickle/" target="_blank" rel="noopener">Prime Minister KP Oli’s visit to Davos</a> with the message that <a href="https://www.nepalitimes.com/editorial/crony-communism/" target="_blank" rel="noopener">Nepal was open for business</a>.The Surpeme Court verdict has also exposed a loophole in Nepal’s tax laws that allows shell companies to get away without paying taxes. TeliaSonera had its dividends frozen in Nepal by the Large Tax-payers’ Office, but the Supreme Court allowed the company to repatriate its profits.   According to the <a href="https://www.nepalitimes.com/latest/nepalis-in-tax-havens-swiss-banks-money-laundering/" target="_blank" rel="noopener">Nepal Leaks exposes</a> by the Centre for Investigative Journalism and the International Consortium of Investigative Journalists, Ncell owners had used the company to launder money as foreign direct investment. Ajeya Raj Sumargi, a businessman close to the former Maoist party and Birendra Mahato of the Federal Socialist Forum Nepal and brother of billionaire overseas Nepali Upendra Mahato were implicated in documents leaked through the Panama Papers about tax havens.The verdict this week opens the door for Nepal to tax FDI that is coming in from offshore tax havens.   Read also: <a href="https://archive.nepalitimes.com/regular-columns/Comment/making-nepal-fdi-friendly,853" target="_blank" rel="noopener">Making Nepal FDI friendly,</a> Shyamal K Shrestha<a href="http://archive.nepalitimes.com/news.php?id=962#.XFwMylUzaUk" target="_blank" rel="noopener">Fight for FDI</a>, Ashutosh Tiwari<a href="https://archive.nepalitimes.com/article/from-nepali-press/Ncell-has-complied-to-all-obligations,3047" target="_blank" rel="noopener">"Ncell has obliged to all obligations"</a>

Supreme Court weighs in on Ncell tax dispute

Harry Jackson was on an epic adventure ‘from Thailand to the UK on 2 wheels’ when he ran into the ultimate sidequest. Having just visited Zangla in Ladakh, Jackson had only landed in Kathmandu when he found himself in the middle of GenZ protests earlier this month. ‘<a href="https://www.youtube.com/watch?v=Slq6zWu9o9w">Arriving in Nepal - Chaos, Protest &amp; Curfews</a>’ is the title of his first video (<a href="https://www.youtube.com/@wehatethecold/videos">wehatethecold on YouTube</a>) about the protest. He shoots police as they shoot at protesters outside Parliament. Jackson is riding a Honda CT125, a retro lightweight motorbike with off-road capabilities. Strapped to the bike is his sparse luggage, flute, and a faded Union Jack. People are rioting on the streets and there is a heavy armed police presence as he makes his way to his hostel in Thamel. His vlog the day after on 9 September has 29 million views. In ‘<a href="https://www.youtube.com/watch?v=IyxSqeFrlp0">The side of Nepal the media won’t show you</a>’, Jackson rides his bike straight at the crowd just past the Parliament building into Old Baneswar.&nbsp; He parks it and walks among the protestors, documenting it all: from the police firing capsules of tear gas into the crowd to the burning Parliament building as well as the jubilant, victorious crowd in the premises as they destroy police vehicles and dance. “I’m shocked at the scenes I’ve witnessed here today. I have truly witnessed history on a stupid trip from Thailand to England on a f***ing moped!” exclaims Jackson as he leaves the scene for the day, heading back to his hostel to edit the footage. The hostel is in direct contrast to the raucous scenes of the protest, as tourists and Nepalis sit and lounge at tables. ‘KUIRE VLOGGER’ Nepalis quickly called him the ‘kuire vlogger’, and attribute his skin colour to his popularity. Objectively, the videos are well made. Jackson goes full gonzo journalist, putting himself right in the heart of the action, talking directly to the people, all while narrating the events as they unfold. Despite being cut together in an entertaining way, the footage retains a raw, unpolished quality that outdoes what most professional journalists with a heavy duty camera crew could do. At a time when legacy media has been seen to be pushing biased narratives, Jackson wants to see for himself what happened, and make up his own mind.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250925120956_f7141e06c72655502fc4b2e56120d084b0f5ae111078d66df4fd0415adf8d376.jpg" data-media-id="editor_3" data-image-id="20250925120956_f7141e06c72655502fc4b2e56120d084b0f5ae111078d66df4fd0415adf8d376" data-rendition-name="original" width="2880" height="1604" loading="lazy" alt="WehateTheCold"> </figure>  This kind of video journalism takes a lot of skill and a certain personality. Many people, almost everybody, had their phones out at the protests, but only a handful were like Jackson. He interviewed people firsthand, edited the clips and uploaded them the same day. Jackson continued his vlogging over the next few days as the curfew was first put in place and then lifted. He explores the city as the Valley rebounds. By this time, Nepalis recognise him everywhere he goes. Jackson had achieved moderate fame as a 23-year old DJ in Birmingham, but what he has done in Nepal is something else. Almost everyone he talks to has already seen his vlog, and they are all eager to interact. He has been on multiple podcasts in Nepal too, and most videos online on the protests reference his vlogs. Before his Nepal blogs, Jackson had a modest 16k subcribers on YouTube, but after Nepal figure is now almost 700k, gaining over 100k each through 11-13 September. Most of them are Nepali viewers. “I’m just a regular dude who just did what he wanted to do,” says Jackson on a podcast. “I wanted to go on an adventure, learn about history, and learn languages. And I wanted to film it, document it, and have a wicked film for my life to show future generations.” &nbsp;

The accidental journalist

Nepal won the first two matches, clinching the T20 series in the UAE, making history: this is the country’s first ever win, and series win, against a Test-playing country.&nbsp; On Tuesday night, Nepal lost the last game by 10 wickets. The West Indies easily met Nepal’s 122 runs in 19.5 overs. Despite that, Nepal had beaten the two-time T20 World Champions which is currently number 6 in T20 rankings. It is important to note that the West Indies are fielding a significantly weaker and younger team than they could. Caribbean heavy hitters Nicholas Pooran, Andre Russell and Shimron Hetmyer are currently resting or playing in domestic leagues. But that does not take away from the fact that, after two narrow misses against South Africa and Bangladesh at the 2024 T20 World Cup, Nepal has now beaten a Test-Playing nation, and done so convincingly.&nbsp; Nepal won the first match of the series on 27 September by 19 runs. Batting first after winning the toss, Nepal put up 148 for 8 after losing openers Kushal Bhurtel and Aasif Sheikh early.&nbsp; Rohit Paudel’s 38 and Kushal Malla’s 30 steadied the innings, and 148 was a reasonable target to defend on the tricky Sharjah pitch. The young Windies dropped a series of catches.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031052_5f24273f6da2f52f6414b7ecc485938a4c726431bfa7c2ba435bded3debe9f5a.jpg" data-media-id="editor_0" data-image-id="20251001031052_5f24273f6da2f52f6414b7ecc485938a4c726431bfa7c2ba435bded3debe9f5a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Nepal defeats West Indies NT 1"> </figure>  Nepal’s fielding, in contrast, was excellent as it held the West Indies to 129 for 8. Dipendra Singh Airee and Kushal Bhurtel both had run outs, and the team held on to tricky catches throughout.&nbsp; The last ball of the match, with it already won, saw Bhurtel catch Fabian Allen off of Airee’s bowling, throw the ball in the air before stepping outside the boundary, before jumping back in to complete the catch legally.&nbsp; Head coach Stuart Law, former Australian Cricketer, was pleased with the performance. “We deserved it, we played a really good game of cricket. I thought our fielding in the first 15-17 overs was outstanding,” he said, predicting, “the West Indies will be hurt, they’re a proud nation. They’ll come out red-hot on Monday, so we got to be better than tonight.”&nbsp; Bhurtel was ecstatic at having beaten the two-time T20 World Champions. He pointed to the team’s versatility as a big strength. “We have a lot of players who can both bat and bowl. Gulsan (Jha) and Kushal Malla did not bowl at all, and Lalit (Rajbhansi) did not bowl out all of his overs.” And the team still used seven bowlers.&nbsp; If the first match was a surprise, then the second match was a shock. Nepal put up 173 for 6, with Aasif Sheikh hitting 68 not out and Sundeep Jora 63, the two putting up a hundred run fourth wicket partnership.&nbsp; They then bowled out the West Indies for a humiliating 83, with Mohammad Aadil Alam taking 4 for 24 and Kushal Bhurtel 3 for 16.&nbsp; There was more excellence in the field, with the Nepali team taking seven catches, many of them very tricky ones right on the edge of the ropes. This second win sealed the series victory, also a first for Nepali cricket. The margin of victory and the team’s overall dominance were both very obvious.&nbsp; Nepalis in the UAE showed up at the Sharjah Stadium in full support for the Rhinos, wearing jerseys, flags, and dhaka topis, raucously cheering on the team’s performance.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031052_217ceb7078e9c253f8db6fec57911eb8e56822e3fc20d520d39e06f475fd6d65.jpg" data-media-id="editor_1" data-image-id="20251001031052_217ceb7078e9c253f8db6fec57911eb8e56822e3fc20d520d39e06f475fd6d65" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Nepal defeats West Indies NT 1"> </figure>  Fresh on their minds must have been recent protests back home. The Cricket Association of Nepal dedicated the series to those who lost their lives. Captain Rohit Paudel also dedicated his man of the match award from the first T20 to the 74 people killed last month in Nepal.&nbsp; “Since last one month has not been that great for us, so slowly we are getting better. It is great to give a little happiness to the people of Nepal,” said Paudel.&nbsp; Leg-spinner Sandeep Lamichhane was notably absent from both matches, having excused himself from the squad for personal reasons.&nbsp; “It is what it is,” said coach Law. “we are a very competitive team and someone has to stand up in his place.”&nbsp; The wins also open the possibilities for further series, with countries such as Bangladesh, Pakistan or Zimbabwe.&nbsp; CHASING TESTS  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251001031048_70fed823c34d91dfefc078cb5786c2ea04ad70387fbf09424a5304b926cc3e3c.jpg" data-media-id="editor_2" data-image-id="20251001031048_70fed823c34d91dfefc078cb5786c2ea04ad70387fbf09424a5304b926cc3e3c" data-rendition-name="original" width="1600" height="995" loading="lazy" alt="Nepal defeats West Indies"> </figure>  In international cricket, a ‘Test-playing nation’ is a country that is authorised to play Test Matches by the central governing body, the International Cricket Council (ICC). Test Matches are the longest format of the sport, lasting up to five days, and are the most prestigious.&nbsp; Currently, this exclusive group is made up of Australia, Bangladesh, England, India, Ireland, New Zealand, Pakistan, South Africa, Sri Lanka, West Indies, Zimbabwe, and Afghanistan.&nbsp; Nepal has a ways to go. To become a Test-playing nation, it must first become a full member of the ICC. To do this, they must consistently qualify for ODI and T20 world cups over eight years, and have at least two ICC-accredited venues for hosting matches — currently only the Tribhuvan University Cricket Ground qualifies.&nbsp; Nepal must also have significant youth development infrastructure, a good domestic setup, and a recognised governing body that is financially stable and not corrupt.&nbsp; With the current development of stadiums across Nepal and innovations such as the Nepal Premier League, and performances such as these, Nepal seems firmly on the way.&nbsp;

2-1 for Nepal against The Windies

Nepal is still reeling from the short but violent GenZ moment, and the reverberations are being felt around the world.&nbsp;
As news from the killings and rampage from Nepal on 8-9 September spread through the wire services and social media, in the Philippines, East Timor and even faraway Peru, banners on the streets last week referred to ‘learning lessons from Nepal’. In Ladakh last week, <a href="https://www.aljazeera.com/news/2025/9/25/bloodiest-day-how-gen-z-protest-wave-hit-indias-ladakh-killing-four">protesters set fire to the ruling BJP party office</a> and four people were killed in police firing.&nbsp;
Nepal’s GenZ was praised by <a href="https://www.nytimes.com/2025/09/19/opinion/asia-protest-youth-nepal-bangladesh.html">international commentators</a> for rising up against chronic corruption and impunity, and for achieving the fastest regime change in history. But the youth were also blamed for the arson and vandalism even though the groups said they had no part in it — most &nbsp;foreign media also did not highlight enough the infiltration by radical groups.
“We were not expecting the protests to turn so violent and deadly. On the second day, things escalated so quickly it became difficult to keep track. We were rushing on the groud and making calls to confirm what was happening,” recalls Paavan Mathema of Agence France-Presse (AFP) in Nepal.
The GenZ protest this month was a lesson on the mechanics of social media. Hashtags like #youthagainstcorruption and #nepobaby from Indonesia inspired Nepal’s youth to take to the streets, but events here in turn triggered protests elsewhere. The international news agencies and mainstream global tv channels were not as important in this information cross-pollination.
The movement was organised online and spread quickly in no time, but it was disinformation and fake news that spread faster than facts. The over-simplification by international media was because it had to explain 30 years of political evolution in a country that they mostly ignored in the past, this sometimes tended to be misleading.&nbsp;
While the Oli government’s social media ban of 26 platforms starting 5 September poured oil on the fire that had already been lit by a disparate group of desperate youth, their outrage over decades of corruption and impunity was reaching a breaking point. There was extreme disenchantment with serial politicians recycling themselves in power.&nbsp;
“The ban on social media definitely triggered the protest, but we put a high priority on accuracy and speed during reporting in such times,” explains the Nepal correspondent for Associated Press (AP) news agency in Nepal Binaj Gurubacharya. “Our own safety also becomes a prime concern in times like these, but should not be at an expense of accuracy.”
CRISIS REPORTING
But headlines everywhere including in The New York Times, The Guardian and others that used wire service content initially highlighted the social media ban as the main reason for the protest. They were soon called out by protesters, while <a href="https://institute.aljazeera.net/en/ajr/article/3358" target="_blank">Al Jazeera</a> and its <a href="https://institute.aljazeera.net/en" target="_blank">Media Institute </a>were applauded for more nuanced coverage.
Another positive example of international media supplementing the stories by local journalists was <a href="https://www.france24.com/en/" target="_blank">France 24’</a>s detailed <a href="https://www.france24.com/en/asia-pacific/20250915-nepal-police-protests-violence-kathmandu" target="_blank">forensic analysis</a> of the security forces firing live ammunition at protesters at Parliament on 8 September.&nbsp;
What really went far and wide around the world were dramatic YouTube videos about the violence, and memes on social media. <a href="https://nepalitimes.com/here-now/the-accidental-journalist" target="_blank">A British tourist</a> who filmed street protests did the work of an on-the-ground journalist and got millions of views globally for some of <a href="https://www.youtube.com/watch?v=Slq6zWu9o9w" target="_blank">his YouTube videos</a>.&nbsp;
But some of the misinformation or fake news on social media was also picked up by the mainstream press, like the <a href="https://timesofindia.indiatimes.com/world/south-asia/nepal-violence-ex-pm-khanals-wife-dies-after-house-torched-president-urges-calm-dialogue/articleshow/123791004.cms">wrongly reported death of former Prime Minister Jhalanath Khanal’s wife</a> in an arson attack on their home. A video of the Finance Minister Bishnu Poudel being <a href="https://www.ndtv.com/world-news/video-nepal-finance-minister-chased-through-street-kicked-attacked-9243749">chased and beaten</a> by protesters also turned out to be someone else.&nbsp;
Some international outlets, mainly in India, also fell prey to a fake video that K P Oli had fled to Dubai. Even this newspaper’s online edition had to correct it after wrongly reporting it without verification.&nbsp;
Indian tv channels which did &nbsp;extensive coverage of events in Nepal, with many Nepalis relying on them and believing their content — especially during the protests when Nepal’s main channels went off air as they were being attacked.
All this got out of hand, and protesters in the week after the violence started ridiculing and harassing Indian tv correspondents as they tried to interview talking heads outside the charred Parliament building, or on the streets.
<a href="https://www.newslaundry.com/2025/09/09/foreign-hand-gen-z-data-addiction-5-ways-indian-media-missed-the-nepal-story">Indian media</a> were also the first to accuse US involvement in sparking a ‘colour revolution’ in Nepal. They later claimed that former Nepal Electricity Authority (NEA) chief and now Energy Minister Kulman Ghising and even Kathmandu Mayor Balen Shah have been appointed interim prime minister in Nepal. These were rumours in Nepal, but were reported as news.&nbsp;
“Fact checking is crucial while covering such movements, and since we are telling an important story about Nepal to the world, double checking becomes important as it sets the international narrative,” says Mathema. “We were constantly double checking with concerned authorities as so much misinformation was being spread.”
“We were constantly double checking numbers and information with concerned authorities and parties to make sure we were accurate, especially as misinformation was rampant,” she adds.
Apart from Indian media, international news agencies got reinforcements of reporters, photojournalists and editors from the region, and other foreign correspondents also flew in when Kathmandu airport was opened after 48 hours.
Adds Mathema: “Sometimes foreign reporters can give a fresh perspective or an angle which we could not see or cover. So their inputs are always helpful.”
In the aftermath of the violence, there were plenty of jokes and memes, clips of protesters dancing, in weird poses and performing martial arts, showcasing the light hearted side of the protests while also <a href="https://nepalitimes.com/here-now/nepal-s-meme-revolution">reaffirming the resilience</a> of people able to bounce back from something so traumatic.
The GenZ clean-up campaigns, neighbourhoods helping restore burnt out police stations and local people’s emotional reaction to the burnt out hulks of government buildings at the city centre also <a href="https://www.scmp.com/week-asia/people/article/3325635/nepals-gen-z-protesters-lead-clean-campaign-after-violent-clashes">made news</a>.
“After the protests, people were quick to gather and clean up public spaces and paint police stations. This is a scene which may not be so common in other countries with similar violence,” adds Gurubacharya. “So it became an important story to also tell the world.”&nbsp;
In less than two days, the world saw a dramatic toppling of a democratic government. With the interim government led by former chief justice Sushila Karki, there is much hope. She has expanded her ministerial cabinet, and the election has been announced for 5 March 2026 but between then and now, a lot remains uncertain.&nbsp;
And Nepal will continue to be watched by national and international media alike until then and after. AP’s Gurubacharya sums it up: “For now, we are taking it one day at a time.”

International spotlight on Nepal

From the echo chambers of social media to neighborhood tea shops, the hot topic two weeks after the GenZ revolt toppled Nepal’s government is whether the country should now have a directly elected prime minister. Although this has been proposed before as a way to end the instability in heads of government chosen by the biggest party or coalition in Parliament, it has found supporters and critics in the aftermath of the protests. As democratic as it sounds, a directly elected executive is not that simple.&nbsp; Nepal’s 2015 Constitution does not allow it, but for a young generation impatient for change, this demand raises critical social, political and constitutional questions. Nepal has seen a multiplicity of systems in the past 45 years: from a partyless absolute monarchy to a constitutional one, a parliamentary democracy and then a federal republic. But they have repeatedly failed to bring stability, good governance or an end to corruption in Nepal. But even though lately they have ensured civil liberties, the public was losing hope for the future, especially the young who could air and amplify their outrage on social media. Unbridled corruption and ideologically mismatched fragile coalitions acting with impunity, led many to conclude that a directly elected prime minister would ensure stability and accountability. ‘We have repeatedly trusted the same political parties, but they have repeatedly broken that trust, so it is no longer possible to trust that system anymore,’ says Miraj Dhungana, popular for the TikTok videos asking young people to go out into the streets to rally against corruption, and seen by many as the ‘original’ representative of Gen Z.&nbsp; In interviews he has stated that it has become necessary for Nepal to have a directly elected executive head through constitutional amendment. Dhungana himself did not participate in the protests after his meeting with pro-monarchist businessman Durga Prasai on 7 September sparked controversy that he as a lackey. Binod Deuba Thakuri of the Nepal Student Union who also participated in the GenZ protests thinks Nepal is institutionally not ready for directly elected prime minister: “Our democracy is not mature yet, our institutions are not strong, and we are vulnerable to social media induced populism.”&nbsp; CONSTITUTION AMENDMENT Amending the Constitution would also open a pandora’s box, with other demands, and should be left to the next legislative body, he adds. In her address to the nation on Friday, Prime Minister Sushila Karki who is a former chief justice also clarified that her interim government does not have the mandate to amend the Constitution to make way for a directly elected head of government, and it should be up to the new legislature and government after the 5 March election.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250919130956_799b2d43dccca73b3bff96e435efc0752203117b2cb219d0073994c0e6f2ee25.jpg" data-media-id="editor_0" data-image-id="20250919130956_799b2d43dccca73b3bff96e435efc0752203117b2cb219d0073994c0e6f2ee25" data-rendition-name="original" width="4160" height="2774" loading="lazy" alt="Constitution Day NT"> <figcaption>Constitution Day address by Prime Minister Sushila Karki on 19th September earlier this month.</figcaption> </figure>  The demand for a directly elected executive head was first raised by Maoist leader Pushpa Kamal Dahal after the 2006 ceasefire. He proposed himself as Nepal’s first executive president ahead of the 2008 Constituent Assembly elections. While the UML did not strongly oppose the idea, the Nepali Congress (NC) stuck to a parliamentary framework. The 2015 Constitution ultimately clinched it for the current parliamentary system. The Constitution stipulates that the process of selecting a prime minister is based on parliamentary strength: the President appoints the leader of the party with a majority in the House of Representatives, or, in the absence of such a majority, a member who can demonstrate majority support. If these efforts fail, provisions exist for coalition or minority governments, and ultimately for the dissolution of the House and fresh elections. The Constitution currently makes no provision for a directly elected prime minister, which means that any attempt to introduce a directly elected executive would first require the careful design of a democratic mechanism to amend the Constitution and set out the procedures for such an election.&nbsp; “There is no legal legitimacy to have the directly elected executive head of the country in the March election, except if political legitimacy surpasses legality but that would mean a new constitution,” explains senior advocate Surendra Kumar Mahato. “Many other institutional arrangements like the appointment of the judiciary, the role of the president, and other check and balance mechanisms would need to be restructured.” Mahato says: “Nepal’s Constitution itself is not at fault — it is the political actors, who have failed to uphold good governance within its framework. Changing systems does not ensure better governance.”&nbsp; Changing the Constitution also needs a broad political consensus, the institutional capacity of the state must be carefully considered to ensure such a new system can function effectively in practice and not simply in theory. Empowering an executive head through direct elections should not come at the expense of accountability or parliamentary oversight, and there should be checks and balances in place. LESSONS FROM ABROAD Sri Lanka’s 2022 Agralaya was fuelled by the anger that the directly executive head turned out to be an authoritarian who backslides on democracy. Under Sri Lanka’s 1978 Constitution, the country adopted a directly elected executive presidency with sweeping powers over the cabinet, appointments, dismissal of parliament, and control over key institutions.&nbsp; Over the years, President Mahinda Rajapaksa removed term limits via the 18th Amendment in 2010, centralised appointment powers, including judges and heads of independent commissions, and used constitutional changes such as the 20th Amendment (2020) to reverse safeguards that limited presidential authority, thereby subordinating the legislature, weakening oversight, and enabling authoritarian control.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250914060932_a96e1046d0b148982b33f2dcbe56f349dc0c20a087e358360eb2dddcfe0b5072.jpg" data-media-id="editor_1" data-image-id="20250914060932_a96e1046d0b148982b33f2dcbe56f349dc0c20a087e358360eb2dddcfe0b5072" data-rendition-name="original" width="4640" height="2610" loading="lazy" alt="GenZ and Aragalaya"> <figcaption>Anti-government protest in Sri Lanka on 13 April 2022 in front of the Presidential Secretariat. Photo: WIKIPEDIA</figcaption> </figure>  Nepal’s multiparty framework upholds an institutional balance where both the governing party and the opposition have defined roles. This parliamentary setup prevents power from being overly concentrated in one individual and ensures accountability through parliament and competing parties. Beyond the neighbourhood, the United States has a directly elected executive system. Donald Trump exemplifies how direct electoral mandate can fracture institutional check mechanisms. He has leveraged his power to attack judges, frame political opponents, turn legal defeats into rallying points for his supporters, often using pliant media platforms to reinforce the idea that institutional checks impeded the popular will. In Nepal, there is a risk that a directly elected prime minister could bring up a populist media savvy messiah who could use public grievances to get to power and consolidate it. Social media can be mobilised and easily saturated with posts to fuel a political narrative of choice.&nbsp; In the past, former prime minister K P Oli’s ‘digital army’ has been lobbied on his behalf on social media. Even without an ‘IT sena’, it is not unusual for governments to collaborate with social media platforms as seen in the US and India.&nbsp; In Nepal, a directly elected prime minister would raise the stakes, turning the battle for votes into a battle for attention online, where a leader who wins the algorithm also wins the elections, just as Kathmandu Mayor Balen Shah demonstrated in 2022 with support from groups like MRR and RONB. The Balen Phenomenon started in social media trickled to the ballot box.&nbsp; The digital space mas ensure that it is not trendy to dislike Balen. Comments that are critical of the Kathmandu Metropolitan City’s treatment of street vendors or of the mayor himself are met with backlash from supporters. Or, if the comments did not get any likes, the algorithms filtered them out as ‘not relevant’.&nbsp; The conversation of Shah often centred on his emotive responses and sentiments, generating strong engagement online. Meanwhile, policy debates received comparatively less attention.&nbsp; “Choosing a leader directly through an election means that we are vulnerable to populism and undermining of the democratic process, accountable institutions,” says Thaukri. Political activist Pradip Gyawali admits that the GenZ revolt was an example of how social media is a powerful tool to organise and disseminate information. But there are risks posed by disinformation and fake news online.&nbsp; “More media and political literacy among the people before the election in March is crucial to control the damage social media could do to influence voter behaviour,” he says.&nbsp; Beyond social media, online news increasingly relies on sensational, click-driven headlines to attract readers in a competitive digital market. A recent survey showed that 82.6% of GenZ (16- 24) rely on Facebook for news and 51.4% on YouTube.&nbsp; Nepali people with higher education seemed to engage with news more (99.1%) than illiterate individuals at 52.1%. Byte-sized headline-only journalism is leaving readers to their own devices, and vulnerable to media infiltration by IT cells.&nbsp; With social media actively shaping the course of elections, and news consumption, debates about changing the Constitution or the system of governance yet again may not ensure the demands for corruption free governance is met. Instead, strengthening media and political literacy among voters is key to prepare for the elections in March. Ayusha Chalise is a communication and development scholar specialising in how politics is experienced in the digital space.

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