At a time when the Nepalese government has pledged to tighten regulations against hundi transactions and illegal capital flight—key factors behind Nepal’s placement on the grey list for money laundering—the Nepal Telecommunications Authority (NTA) has reportedly approved WorldLink Communication Limited’s transfer of nearly NPR 1 billion to a Hong Kong-based company with a capital of just one dollar.
According to sources, WorldLink made this payment last week to Interaptus Limited, a Hong Kong-registered company with a mere one-dollar capital, as part of its pending dues for international internet bandwidth procurement. Moreover, the company is reportedly planning to send an additional NPR 4 billion to the same entity for bandwidth purchases covering the period since April 2023.
Payments Diverted from India to Hong Kong
Previously, WorldLink imported bandwidth from India’s Tata and Airtel. However, despite receiving services from these Indian firms, the company has been transferring payments to the Hong Kong-based Interaptus Limited. Earlier, Nepal Press had revealed that payments meant for Indian providers were being rerouted to the one-dollar company in Hong Kong.
Regulatory authorities, instead of investigating this large-scale financial transaction, have reportedly facilitated further payments. Over the past 11 years, WorldLink has allegedly transferred a total of NPR 11 billion to the Hong Kong-based company under questionable circumstances.
Suspicious Links to Indian National
According to company records in Hong Kong, Interaptus Limited lists Balram Kumar as its director, with an address in Darbhanga, Bihar, India. Documents obtained by Nepal Press also reveal that Kumar used an Indian passport to register the company in Hong Kong.
Regulatory Evasion and Foreign Exchange Violations
Records at the Nepal Telecommunications Authority indicate that WorldLink had a bandwidth procurement agreement with Airtel India until August 12, 2015. However, after that date, the company shifted its procurement paperwork to Interaptus Limited while continuing to source bandwidth from Airtel and Tata in India. Notably, Interaptus Limited lacks any operational office or telecommunications infrastructure.
Further investigations show that Interaptus Limited has also registered another one-dollar company called Phoenix Venture Limited, through which funds have been routed to British Virgin Islands (BVI). From BVI, these funds are allegedly used for real estate investments in Saudi Arabia, UAE, and New York, USA.
Foreign Exchange Fraud and Underpriced Bandwidth Deals
WorldLink had previously faced investigations for sending payments in dollars to third-party countries despite receiving services from India. The Ministry of Communications and Information Technology raised concerns that the billions transferred from Nepal to a one-dollar company in Hong Kong could be a case of foreign exchange fraud and capital flight.
Documents submitted to the Nepal Telecommunications Authority indicate that Interaptus Limited charged $3.3 per Mbps per month for internet bandwidth. However, WorldLink was actually procuring bandwidth from Airtel and Tata at just $1.33 per Mbps per month, raising suspicions of currency manipulation and capital flight.
When authorities demanded WorldLink submit agreements with both Interaptus Limited and actual service providers Airtel and Tata, including IP Transit or International Private Lease Circuit (IPLC) agreements, WorldLink responded by writing to then-Prime Minister Prachanda, warning that Nepal’s internet services could be disrupted.
Lack of Oversight from Regulators
The government had previously blocked WorldLink’s foreign exchange transactions and initiated investigations. However, recent unconditional approvals to resume payments have raised concerns of high-level financial dealings.
Notably, Interaptus Limited is merely a trading company and has no telecommunications infrastructure to justify its role in Nepal’s bandwidth procurement. Nepal imports approximately 2,500 Gbps of bandwidth per month through optical fiber links at the Nepal-India border. As Interaptus Limited has no infrastructure at these locations, it is impossible for the company to be a direct supplier of bandwidth to Nepalese ISPs.
Regulators Under Scrutiny
Authorities have demanded that WorldLink disclose the bandwidth procurement costs, as the payments made to Interaptus Limited appear significantly higher than the actual service costs. However, WorldLink has yet to submit its IPLC/IPT agreements to the ministry or regulatory body.
In Nepal, it has long been suspected that businesses transfer profits abroad under various pretexts while operating domestically. The Nepal Telecommunications Authority (NTA) has faced criticism for failing to ensure accountability and prevent capital flight through international internet bandwidth procurement.
Furthermore, WorldLink has not even paid its legally required royalty, revenue, and rural telecommunication fund fees, forcing the courts to intervene. Yet, despite the alleged transfer of billions to offshore accounts in British Virgin Islands, neither the Ministry of Communications nor the Nepal Telecommunications Authority has shown serious intent to investigate the matter.
