The Nepal Electricity Authority (NEA) has requested Nepal Rastra Bank (NRB) to freeze the bank accounts of industrialists who have failed to pay dues for using electricity through dedicated feeders and trunk lines. NRB stated that it would assess the request based on the legal provisions outlined in its regulations.
The Regulation on Suspension and Release of Bank Accounts, 2024, issued by NRB, has a provision for an authorized officer to request account suspension from NRB as part of a crime investigation. The regulation mandates that any institution requesting a freeze must cite the relevant legal provisions and submit a detailed written request to NRB, including all necessary information. Upon fulfilling these requirements, NRB may direct licensed institutions to freeze the accounts immediately.
The regulation defines the authorized officer as an individual designated under prevailing laws to investigate crimes. On Wednesday, NEA sent a letter to NRB citing its intent to recover dues fixed by the government.
"A letter has been received at the governor's office," confirmed a senior NRB official. "If the request aligns with the Regulation on Suspension and Release of Bank Accounts, 2081, NRB will act. Otherwise, we cannot proceed, as freezing accounts without a legal basis violates property rights," the official added.
Specifics Required for Account Freezes
The regulation stipulates that legal entities must provide the official name, address, registration number, and permanent account number (PAN) of the account holder. The account numbers and bank details must also be submitted for freezing the bank accounts.
For individuals, the request must detail the reason for the freeze and include identification documents such as citizenship, passport, or national identity card. Three copies of these documents must be submitted with the request. NRB is not obliged to act if the request lacks a legal basis or is made by an unauthorized individual.
NEA has asked NRB to freeze the accounts of 34 industries with unpaid dues amounting to Rs 6.4 billion. Earlier, the Electricity Regulatory Commission directed NEA to recover dues through alternative means. Following this directive, NEA’s board decided to involve agencies such as NRB to freeze accounts, suspend share transfers, and halt the issuance of new shares by defaulting industries.
"If NEA meets the requirements, we will proceed with freezing accounts," an NRB official reiterated. "Otherwise, NRB is not legally empowered to take action based on a mere request."
A senior official at the Ministry of Energy, Water Resources, and Irrigation alleged that NEA’s Executive Director, Kulman Ghising, acted unlawfully by writing directly to NRB without consulting the ministry. Ministry sources indicated such correspondence should be coordinated with the ministry.
In response, Ghising defended his actions, stating that NEA does not need prior approval to engage with agencies such as NRB, the Electricity Regulatory Commission, or SEBON.
"We informed the Electricity Regulatory Commission about our correspondence with related agencies. If there is any legal issue, the commission will notify us. These measures were discussed and approved in the board meeting," Ghising explained.
Senior Advocate Gandhi Pandit backed NEA’s approach, stating that the Council of Ministers and the Electricity Regulatory Commission had instructed NEA to recover dues through alternative methods rather than cutting power lines. "NEA is well within its rights to collect dues through measures like account freezes. The NEA’s actions are legally valid," Pandit remarked.
