<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>

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Supreme Court weighs in on Ncell tax dispute

As arson and violence swept Nepal’s capital, Prime Minister K P Oli resigned on Tuesday. However, this did not stop angry protesters from setting fire to the Parliament building, homes of ministers, hotels and other property. Singha Darbar is also in flames. Meanwhile, former Prime Minister Sher Bahadur Deuba and his wife, Foreign Minister Arzu Rana Deuba were also attacked in their house. As protests spread, Police withdrew from guarding official buildings, and thousands of protesters entered the federal government secretariat at Singha Darbar, ransacking and setting fire to buildings.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa.jpg" data-media-id="editor_0" data-image-id="20250909120916_a86227e5556356134565053699ed9599f8b268d0c22815fa94410ffac52a49fa" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="de-escalation"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039.jpg" data-media-id="editor_1" data-image-id="20250909120916_995f368b8c372bf2f99b6a9c25c2816e941413b3c19d0f94458c07604391b039" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Kathmandu Valley was shrouded in smoke under heavy monsoon clouds on Tuesday afternoon with an acrid smell covering the capital. The minister’s quarters in Bhaisepati were set on fire, the convention centre in Godavari, the Hilton Hotel and Chhaya Centre in Thamel, and the headquarters of all three main parties were also burning.&nbsp; The widespread arson was sparked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">killing of at least 19 young protesters</a> as they tried to storm Parliament on Monday. A peaceful rally by youth against corruption and nepotism by Nepal’s GenZ movement in Kathmandu escalated after the killings. With the prime minister out of the picture, the government not visible and the security forces in retreat, protesters have had the run of the three cities of Kathmandu Valley.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511.jpg" data-media-id="editor_3" data-image-id="20250909120916_207c3c25f8aa9bd0934b8c98ccee1221e3a062815cfcb1e211deddb4dccd6511" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468.jpg" data-media-id="editor_4" data-image-id="20250909120920_bb2c0f273dc95ef62c58b5f55045c58cbddc4b3b8f619e938be76ef2cda69468" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Nepal’s celebrity cricket captain Paras Khadka has appealed to to call off the agitation, saying: “The prime minister you wanted to kneel has already knelt.” Former prime minister and Maoist ideologue Baburam Bhattarai called for the formation of an interim government that included some young student leaders. He called for the agitating groups to find a solution from within the Constitution and a directly elected presidential system. All members of the opposition RPP and the RSP have resigned from Parliament, while party supporters entered the Nakkhu Jail and freed the RSP leader Rabi Lamichhane who had been detained for the past 8 months by the Oli government on charges of embezzlement. Some of the protesters also want an end to federalism, which was also the demand of opposition parties like the RSP and the pro-monarchist RPP. Chief Minister Satish Kumar Singh has stepped down. Many of the protesters have voiced support for Kathmandu Mayor Balen Shah, who &nbsp;posted on Facebook calling on the GenZ protesters to “be ready to talk to the Army … but only after Parliament has been dissolved”. Army Chief Ashok Raj Sigdel and the heads of security agencies have called on the protesting groups to excercise restraint and to find a solution through talks.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a.jpg" data-media-id="editor_5" data-image-id="20250909120912_cd93a827631d987ee52723aa270faf45aa42e4322eb8f06304b28215e3cea28a" data-rendition-name="original" width="1440" height="1042" loading="lazy" alt="Kathmandu protests"> </figure>  Although the <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">protests were sparked by the GenZ campaigners</a>, disparate groups, including monarchists, anti-federalists, disgruntled Maoists, dissidents from the mainstream parties, and others have joined the protests. But one thing that united them is extreme frustration with the mainstream parties and their leaders past and present who have taken turns running and ruining the country.

Kathmandu burns despite PM resignation

Many had never heard of <a href="https://www.haminepal.org/">Hami Nepal</a>, the organisation that is part of the GenZ movement that did not just topple the government this week, but <a href="https://nepalitimes.com/news/what-next-nepal">pushed Nepal’s political system into new, uncharted territory</a>. It was part of an organic coming together of various youth groups fed up with Nepal’s corruption, mismanagement and lack of accountability. Hami Nepal and its GenZ comrades are now part of the negotiations with the Army to form an interim government. Hami Nepal is a non-profit dedicated to supporting communities and individuals in need, guided by its motto ‘For the People, By the People’. Its core mission is to assist individuals and communities in need, particularly during emergencies and crises, with a focus on directly connecting donors with recipients, and delivering aid efficiently and transparently. It was set up after the 2015 earthquake, but was formally registered and gained recognition in 2020 during the Covid-19 pandemic. Hami Nepal is led by 36-year-old civic activist Sudan Gurung, and mentored by renowned ophthalmologist Sanduk Ruit. Gurung started the organisation after he lost his own son in the 2015 earthquake, and now has over hundreds of thousands of members, growing by the hour.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_34e57abe26d5b243a6c2d0c01215d2e7b55c7b36a3c13b9f82d421b9588482b9.jpg" data-media-id="editor_2" data-image-id="20250911090920_34e57abe26d5b243a6c2d0c01215d2e7b55c7b36a3c13b9f82d421b9588482b9" data-rendition-name="original" width="707" height="647" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Leading up to the events this week, it played a central role in guiding the demonstrations, using its Instagram and Discord platforms to circulate protest information and share guidelines. Other GenZ groups used their own WhatsApp groups and other fora.&nbsp; Among the 20 or so volunteers is Ronesh Pradhan, who spoke to <a href="https://nepalitimes.com/news/nepal-s-gen-z-protest-turns-deadly">Nepali Times on 8 September </a>morning during the GenZ rally, before the violence escalated.&nbsp; “The voices of young people matter. We can’t keep being ruled by the same old men,” Pradhan said. “Our generation is the future and if there are older leaders in government, they need to be competent and accountable. We are ready to lead this country forward.” Hami Nepal’s earliest visible campaigns include donating more than 400 blankets to Bir Hospital’s Covid unit in 2022, creating a plasma and oxygen bank during the pandemic, and distributing school jackets to children in rural districts. More recently, it mounted a relief effort in response to the 2023 Jajarkot earthquake, reaching over 13,000 families with shelter, food, and medical support. The organisation was also associated with the two-month ‘Save Ghopa’ campaign, demanding effective and smooth administration of the BPKIHS (B P Koirala Institute of Health Sciences) in Dharan. The organisation was also actively engaged in providing rescue and relief during the Kagbeni and Sindhupalchok floods this year. It even sent aid to Turkey after its 2023 earthquake. After the Kavre floods last year, Hami Nepal donated solar lights. Funding for Hami Nepal comes directly from public donations, with a policy of channeling 100% of received funds for aid distribution. Volunteers self-finance administrative costs, and the group publishes detailed expenditure figures, regularly sharing updates and transparency reports through their social media and website which it launched at its Annual General Meeting in Bhaktapur last year.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88.jpg" data-media-id="editor_4" data-image-id="20250911090920_cd40c472bd7e06cc038a2d77a431cba777b6f53e4374a0216c9af2c4feb56c88" data-rendition-name="original" width="1080" height="719" loading="lazy" alt="Who, or what, is Hami Nepal?"> </figure>  Following the death of Nepali student Prakriti Lamsal at KIIT University in India earlier this year, Hami Nepal advocated for justice using its Instagram account, raising concern about the safety of Nepali students. Its advocacy platform started with rescue and relief, and Hami Nepal managed to develop a track record for efficient campaigns and transparency in Nepal’s humanitarian landscape. But its work pushed the group to realise that there was a deeper malaise in Nepali society. Its #youthsagainstcorruption campaign on social media platforms gained rapid momentum, and that led to the rally on 8 September. Read also: <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">Nepal’s 8 September massacre</a>, Shristi Karki The international #Nepobaby trend on TikTok propelled the rally even more, and young Nepalis used it to expose the scions of powerful politicians and politically-connected influencers who were exhibiting their flashy lifestyles on social media while citizens struggled with joblessness, corruption and poor service delivery. Public anger reached a tipping point when the UML-NC coalition led by Prime Minister K P Oli announced a sweeping ban on major social media platforms citing tax revenue, cyber security, and lack of content moderation. Netizens, civil society and media, however, saw it as the latest authoritarian attempt by the government to clamp down on free speech, increase surveillance of citizens and constrict Nepal’s open society. Susmita Khadka, 22, told us at the rally: “Politics is everywhere. Gen Z has the most platforms, and we want a revolution.” Leading up to 8 September, the GenZ movement disseminated information and reassured participants with volunteers readily available for help, medical support, and assistance. It put up a protest support helpline so that students needing assistance could get help. As the protests intensified, leaving at least 20 dead outside Parliament, and forcing Prime Minister K P Oli to resign, Hami Nepal shifted into a mediator role, engaging in talks with officials and seeking GenZ’s views on future leadership.&nbsp; Influencers like TikToker Nimesh Shrestha publicly backed the group, amplifying their voice in ongoing negotiations with the Nepal Army alongside other GenZ representatives. However, as the protests escalated on 9 September, <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">resulting in massive arson and vandalism of public and private property</a>, many GenZ activists disavowed association with the attackers, saying their movement had been infiltrated. The group backtracked, with Gurung saying he was not the leader of the protests.&nbsp; Meanwhile, others accused Hami Nepal for singlehandedly speaking with the Army chief, and said that they did not represent GenZ’s collective voice. Most GenZ supporters backed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">Former Chief Justice Sushila Karki</a> as their candidate for interim prime minister in an online group. Not everyone in the GenZ movement agrees with that choice, with support for Kathmandu Mayor Balen Shah, even though he has endorsed Karki’s appointment. Dharan Mayor Harka Sampang rushed to Kathmandu on Wednesday to push his own candidacy. Hami Nepal has supported Balen Shah to lead the country for the next five years, not just during the interim period, and have called on the public to share their posts supporting Shah to amplify the message. With the old guard gone, there is a power vacuum with multiple actors with competing interests to fill it. GenZ’s youth-led activism has brought new energy for political reform, but its real test begins now — whether it can unite Hami Nepal and other sections to negotiate with the Nepal Army.&nbsp;

Who, or what, is Hami Nepal?

A rally organised by young Nepalis across the country against corruption, impunity and restrictions on freedom of expression on Monday turned into one of the deadliest days in the country's recent history. As of Monday evening, the death toll from the protest had reached 19, with 17 killed in Kathmandu and two in Itahari. More than 350 people were injured. Police have arrested more than 40 protesters. Home Minister Ramesh Lekhak of the Nepali Congress resigned, and there have been calls from opposition parties for the entire NC-UML coalition to step down and announce early elections. The protest followed a growing online movement led by young Nepalis exposing the ostentatious display of privilege by the offspring and relatives of politicians and other public figures, which had sparked discourse about nepotism, corruption and the wealth gap in Nepal. Confronted with joblessness and corruption, Nepali youth looked to the recent street movement in Bangladesh, where a student uprising against quota-based recruitment for government jobs expanded last year and toppled the autocratic Sheikh Hasina government. In Indonesia, public frustration with government apathy boiled over into a national movement last month after it emerged that elected officials and the political elite enjoyed perks while citizens faced a cost of living crisis. In the Philippines, as disaster mitigation-infrastructure projects failed to work, citizens began to question where the funds for such projects were actually going. This prompted social media users to look deeper into the lives of the politically-connected figures who flaunted their lavish lifestyles online. In Nepal public outrage has been building up against nepotism, corruption and impunity in government. Facing unemployment at home, nearly 10% of Nepalis, mostly youth, toil overseas or leave Nepal in search for better lives abroad. Meanwhile, the well-connected posted images online of themselves enjoying holidays abroad paid with the ill-gotten wealth of relatives in high places. Young GenZ Nepalis, frustrated with establishment politicians, had called for an anti-corruption, anti-government movement across the country. This coincided with the Nepal government’s decision on 5 September to ban 26 social media sites for failing to register and pay taxes in Nepal.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6.jpg" data-media-id="editor_0" data-image-id="20250908120956_53f97cf0de3ddc8d5c823686f56e71981df922d0ecd2989ad842245acdf71aa6" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Gen Z protest"></figure>  Faced with the government's social media blockade, the protests took to the street. The movement was supposed to be apolitical, and focused against corruption. It garnered support from public figures and opposition leaders, some of whom conveniently forgot that they had been in government when the TikTok ban was imposed in Nepal in 2023. On Monday morning, protesters showed up at Maitighar with slogans and placards, many of them college students, even school children. The organisers had called for young Nepalis to join in their uniforms, believing that it would protect them from violence that might occur during the course of the day. By mid-morning, thousands of Nepalis had gathered at the Mandala intersection, playing music and chanting slogans. The mood was almost festive. Shortly after noon, however, a rally that had begun peacefully descended into violence after protesters broke the police barricade in Baneswor to storm Parliament. Police first began firing tear gas and water cannons, and then live ammunition at demonstrators. The Kathmandu district administration is said to have authorised full use of force against protestors who vandalised public property after protestors infiltrated the Parliament grounds.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67.jpg" data-media-id="editor_1" data-image-id="2025090818090_84e4a5bdcf19aa3cbf03831140120c88d9f3fe5a12d47041588fea7409988e67" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Gen Z protests"><figcaption>Photo: SUDIKSHA TULADHAR</figcaption></figure>  Organisers Hami Nepali had requested demonstrators to go home as the protests turned deadly, saying that those who stormed Parliament were not associated with them, hinting that the rally had been infiltrated by radical groups. But by that time, the demonstration had got too large to contain. In the ensuing violence, hundreds were left injured, including journalists, and 17 dead so far in Kathmandu. Nepal’s leadership and security forces do not seem to have learnt their lessons about managing mass protests after the pro-monarchy demonstrations in March in which two people were killed. The indiscriminate use of force against unarmed Nepalis turned into a massacre. The emergency wards in Kathmandu are filled with those with bullet wounds on their legs, arms and heads. Hospitals have called for blood donations. At the time of publishing, there has been no statement from the Prime Minister, who before the protest on Monday had belittled GenZ youth as being naive, wet behind the ears, and their movement being ‘led by provocateurs’. Oli has presided over a slew of Bills to constrain the press, social media, and civil society, he has silenced and mowed down competitors and critics within his own party. This week, the UML got rid of age and term limits for party chairmanship, effectively clearing the way for 74-year-old Oli to head the party for the foreseeable future. Also feeding into the anger in the GenZ protest was a CCTV clip of a young woman being hit on Saturday at a zebra crossing by the car of a provincial minister in Godavari. The video of the car speeding away without stopping went viral on TikTok, one of few social media platforms still functioning.  <figure><img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387.jpg" data-media-id="editor_2" data-image-id="2025090818090_35799a98e5a7f5f865bb6f94633059d2baa66ec57ea0d396ab020f2f8f912387" data-rendition-name="original" width="854" height="641" loading="lazy" alt="Gen Z protest"><figcaption>Photo: SANGYA LAMSAL</figcaption></figure>  Oli fuelled the outrage by dismissing the victim’s injury as “minor”, and accusing political rivals of magnifying the issue. Opposition leaders and members of civil society have called for the government to resign en masse, and the fourth-largest party in Parliament, the RSP, has called for a snap election. As per his agreement with the NC, Oli is supposed to hand over power early next year to its leader ’s Sher Bahadur Deuba. Some analysts have suggested that if Oli did the handover now, he could help defuse the situation and earn brownie points ahead of the 2027 elections. But such political calculation would belittle the tragedy that has befallen the families of the 19 who were killed on Monday. Nepal’s political leadership cannot think that just reshuffling its three-card prime ministerial deck will quell public anger now. Nepal’s next generation wants to uproot the rot of corruption from politics, governance, and the bureaucracy. It wants elected leaders to deliver services, provide jobs and raise living standards. Monday’s massacre has only made them angrier, and bolstered their resolve to lead from the front.

Nepal’s 8 September massacre

After a week of violent and destructive protests, Nepal’s President Ram Chandra Poudel on Friday appointed <a href="https://archive.nepalitimes.com/regular-columns/Legalese/justice-in-chief,804">former Chief Justice Sushila Karki</a> as a caretaker Prime Minister to lead an interim citizens' government.&nbsp; Poudel had been in <a href="https://nepalitimes.com/news/what-next-nepal">closed-door discussions since Thursday</a> with youth members who spearheaded the protests, constitutional experts, the House Speaker, and the Army Chief. There was a consensus on the choice of Karki as candidate for interim prime minister, but her swearing-in was stalled due to a disagreement about Constitutional processes for her appointment.&nbsp; Youth delegates and Karki demanded that Parliament be dissolved before the appointment of the caretaker prime minister, while President Poudel had been arguing that Parliament would be automatically dissolved once the new council of ministers announced elections. Representing the GenZ movement, <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">Sudan Gurung</a> (pictured, below) is said to have insisted that dissolution of Parliament first was non-negotiable because he did not trust the political parties. He is said to have added that he would call his supporters out into the streets, and the President relented. The military’s warning earlier that an emergency would be declared if there was no agreement tonight clinched it.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3.jpg" data-media-id="editor_3" data-image-id="2025091216098_cdd409c5824b578a04f05a43280e3f475d92bf7123d3a4565b4d720768fcc1b3" data-rendition-name="original" width="1080" height="600" loading="lazy" alt="Sudan Gurung"> </figure>  With this, Karki becomes Nepal’s first female prime minister, exactly a decade after she became the <a href="https://archive.nepalitimes.com/article/interview/a-woman-is-as-capable-sushila-karki,3375">country’s first female chief justice in 2016</a>.&nbsp; Nepalis, still shocked by the <a href="https://nepalitimes.com/news/nepal-s-8-september-massacre">death and destruction of the past week</a>, heaved a sigh of relief at the announcement, which was greeted as a victory of youth power for political reform led by the GenZ movement. Its initial anti-corruption protest on 8-9 September <a href="https://nepalitimes.com/news/kathmandu-burns-despite-pm-resignation">spiralled out of control into violence and arson</a> nationwide that claimed at least 51 lives. Several other candidates were being considered for the caretaker prime minister’s post. Kathmandu Mayor Balen Shah and former head of the electricity utility Kulman Ghising were being considered, but both declined possibly because they want to contest the next national elections. Given her experience in the judiciary and zero tolerance for corruption, Karki was the favourite of various groups within the GenZ campaign.&nbsp; The site of the negotiations moved to the official residence of the president in Shital Niwas from the Nepal Army Headquarters on Thursday. The Army had come under criticism on social media and from civil society for detaining the President and not letting him speak or be a part of the negotiation.&nbsp; This fuelled public perception that the military had a soft spot for a return of the monarchy. There were widespread rumours on Thursday that king Gyanendra, who was ousted after the abolition of the monarchy in 2008, was trying to stage a comeback by piggybacking on the agitation. Writing on X, senior journalist Kishore Nepal revealed that the Chief of Army Staff Ashokraj Sigdel had allegedly asked Poudel to step aside and pave the way for the military to negotiate, to which the President is said to have replied: “I will not resign. Kill me instead and blame it on the protesters. Then you can do whatever you like.” Live broadcast of swearing in of Sushila Karki:&nbsp; <div class="embed-block"><iframe width="560" height="315" src="https://www.youtube.com/embed/53go4OxuOa0?si=Zd89QGIAX8-7Bm75" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe></div>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d.jpg" data-media-id="editor_8" data-image-id="2025091219094_41b0f97a5925ab6969e1413636bf073ae43262893a55d9c177cb1312dea52f0d" data-rendition-name="original" width="1280" height="851" loading="lazy" alt="Sushila Karki swearing in"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025091301098_470dbca4f4d34ca4533ce4d160045ffe8e525e98380f6f1e20eb24a6236c6029.jpg" data-media-id="editor_9" data-image-id="2025091301098_470dbca4f4d34ca4533ce4d160045ffe8e525e98380f6f1e20eb24a6236c6029" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Sushila Karki PM"> </figure>  COURAGE AND INTEGRITY Sushila Karki served as the chief justice between 11 July 2016 to 6 June 2017, and has been known for her frugal ways. She was a firebrand judge unafraid to ruffle powerful feathers, and as chief justice was behind ruling to impeach for abuse of office a powerful head of Nepal’s anti-graft body in 2016. She wrote that he had ‘<a href="https://archive.nepalitimes.com/regular-columns/Legalese/the-end-of-karkistocracy,827">neither the moral character nor qualifications for the post</a>’. Even before she became Chief Justice, Karki was one of the two judges on the bench that convicted the sitting Minister for Information and Communication, Jaya Prakash Gupta, of corruption in 2012. Then in 2016, a bench including Karki ruled against granting amnesty to former Maoist lawmaker and convicted murderer Bal Krishna Dhungel. Karki was born on 7 June 1952 in Biratnagar. She completed her undergraduate studies at Mahendra Morang College in 1972 before obtaining a postgraduate degree in political science from Banaras Hindu University in India three years later. This was followed by a Bachelor's in Law in 1978 from Tribhuvan University, and she started her law career as an advocate a year later. In 1985, Karki worked as a teacher at Mahendra Multiple Campus in Dharan, and was jailed for participating in the 1990 People’s Movement to overthrow the Panchayat absolute monarchy. She became a senior Advocate at the Nepal Bar Association in 2008 and was appointed an Ad-Hoc Justice at the Supreme Court in January 2009.&nbsp; On Thursday, there were supporters for other candidates for the post sloganeering against Karki’s nomination outside the Army Headquarters. Some on social media were also skeptical of her connection to the Nepali Congress (NC) party. Growing up in Biratnagar Karki was close to the family of B P Koirala, Nepal’s first elected prime minister in 1960. Her husband Durga Subedi was part of a group of underground Congress activists who hijacked a Royal Nepal Airlines plane in 1973, flying it to India to snatch cash belonging to Nepal Rastra Bank in the cargo hold.&nbsp; The money was used for the party’s pro-democracy campaign. Karki has no love lost for the political establishment. In April 2017, the governing coalition under Maoist Prime Minister Pushpa Kamal Dahal <a href="https://archive.nepalitimes.com/article/editorial/lady-justice-sushila-karki,3693">submitted an impeachment motion against her</a> after the Supreme Court overturned his decision to install a favoured police chief, violating succession based on seniority. It was a political move backed by Dahal’s coalition partner Sher Bahadur Deuba of the NC who was waiting to become prime minister for the 4th time. CHALLENGES AHEAD With Karki now in charge of the interim government, she has the daunting task of forming a council of ministers made up of amorphous and disparate groups from the GenZ, technocrats, and current politicians. Karki has said she will not prevent members of her cabinet from contesting elections, which means those with electoral aspirations like Kulman Ghising, Balen Shah and Sumana Shrestha could be asked to join. Karki has her work cut out as she has to get her team members to pull in the same direction to hold free and fair elections. She also has to make sure she has the support of the military without giving the generals too much say, while also smartly maneuvering Nepal’s precarious geopolitical ties with its giant neighbours, China and India. But most of all, the new prime minister must lay the foundations to not just physically rebuild the judiciary, executive and legislature but also ensure that elections will produce a more accountable and efficient government. Read also: <a href="https://nepalitimes.com/editorial/trial-by-fire">Trial By Fire</a>, Editorial

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