Advocating for Digital Rights and best practices in Nepal

Digital Rights Weekly/ Year 4 Issue 8

Feb 21, 2025
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House of Representatives Passes E-Commerce Bill
The House of Representatives (HoR) unanimously passed the E-Commerce Bill on February 18, aiming to regulate online trade. Initially registered in the National Assembly on June 27, 2023, and passed on November 2, the bill reached the HoR with amendments and now awaits presidential certification to become law.
The bill mandates company registration for online businesses and the establishment of electronic platforms for trading goods and services. Violations, such as operating without a platform or failing to disclose product details, may result in fines of Rs 10,000 to Rs 50,000. More serious offenses, including failure to meet business liabilities, can lead to 2–3 years of imprisonment or fines up to Rs 500,000. The bill also introduces consumer protection measures, requiring businesses to resolve complaints, ensure clear product information, and allow returns if goods do not meet expectations.
Introduced by former Industry Minister Ramesh Rijal, the bill aims to systematize and promote e-commerce, ensuring consumer rights, business accountability, and market reliability. It is also expected to boost employment, exports, and MSME growth in Nepal.
 

Nepal Police Introduces AI-Based Intelligence Tools for Crime Investigation
For the first time, Nepal Police has procured AI-based intelligence tools to enhance criminal investigations. The Police Criminal Investigation Department is set to deploy ‘AI-based Business Intelligence Tools,’ with the system now in its final stages of implementation.
According to AIG Kuber Kadayat, the AI-based intelligence tools were purchased for over Rs 10 million. According to the reports, these AI-driven analytical tools will aid in crime investigations by analyzing data, predicting future crime trends, and identifying potential challenges. DIG Bhandari emphasized that the system will provide insights into emerging crime patterns and necessary preventive measures, strengthening law enforcement efforts in Nepal.

Supreme Court Upholds Constitutionality of Section 47 of the Electronic Transaction Act
The Supreme Court of Nepal has ruled that Section 47 of the Electronic Transaction Act, 2063 is not in conflict with the fundamental rights enshrined in the Constitution. The full text of the Constitutional Bench’s verdict, issued on April 3, 2024 has been made public.
A division bench, including then Chief Justice Bishwombhar Prasad Shrestha and Justices Ananda Mohan Bhattarai, Prakash Man Singh Raut (Current Chief Justice), Sapana Pradhan Malla, and Prakash Kumar Dhungana, dismissed a writ petition filed by Advocate Pratyushnath Upreti. The petitioner had argued that Section 47’s provisions—penalizing the publication of content deemed illegal, immoral, or harmful to public harmony—violated constitutional rights, including freedom of expression, communication, and dignity.
The court, however, ruled that Section 47 aligns with constitutional provisions, human rights norms, and the need to regulate digital content to prevent misinformation, hate speech, and defamation. Acknowledging both the opportunities and challenges posed by digital platforms, the court emphasized that misinformation spreads rapidly online, potentially causing serious harm.

Complaint Filed Against Comedians and Podcaster Over Controversial Remarks on Singer Kuma Sagar
complaint has been filed at the District Police, Kathmandu, against comedian Sajan Shrestha, Utsav Sapkota, and podcaster Sushant Pradhan, accusing them of “teasing” singer Kuma Sagar and disturbing social harmony.
The controversy arose after Pradhan uploaded a podcast featuring comedians Sujan Zimba, Utsav Sapkota, and Sajan Shrestha to discuss the impact of the proposed social media bill on content creation. During the discussion, Shrestha attempted to sing Kuma Sagar’s song, allegedly mocking the Newa tone, which led to public backlash. Following the controversy, the video was removed from YouTube.
The incident has sparked a debate on artistic freedom, with some arguing that comedy should not be used to hurt individuals, while others defend satire and caricature as essential aspects of creative expression.

Low Women’s Participation in Nepal’s ICT Sector
A study by Women in Information Technology (WIIT) reveals that women’s participation in Nepal’s ICT sector is only 7.88%, dropping to 0.51% in organizations with minimal ICT use. The report, Barriers to Success: Status of Women in ICT, was released in Lalitpur on February 18.
According to the report, young women dominate the sector, with 45.54% aged 18-25 and 43.70% aged 26-35. Among them, 19.55% hold senior positions and 40.4% are in mid-level roles. Educationally, 67.1% are graduates, 20.95% postgraduates, and 0.64% PhD students. Similarly, it mentions that the workplace policies remain inadequate, with only 34.3% of companies having support measures for women. While 38% offer 46-60 days of paid maternity leave, 11.4% provide none. Salary discrimination is reported in 12.1% of companies, though Nepal fares better than other Asian countries in pay equity.

Major Cyber Attack Targets Nepal’s Government Websites
On February 13, a major cyberattacks compromised 21 subdomains under ‘koshi.gov.np’, raising concerns about Nepal’s digital security. The hacker group YNR! claimed responsibility on Zone-H, uploading a malicious file (‘ynr.html’), likely exploiting vulnerabilities in the system. The affected websites remain inaccessible, suggesting a possible DDoS attack. This is not YNR!’s first attack—on December 30 and 31, 2024, they targeted government sites in Gandaki, Lumbini, and Bagmati provinces, along with national parks and embassies.
The incident underscores serious flaws in Nepal’s cybersecurity framework and the growing threats to public digital infrastructure. Without strong preventive measures, Nepal’s government data and systems could face even greater risks in the future.

Advocate Sigdel Calls for Telecom Tax Reforms and Policy Updates
Advocate Santosh Sigdel, Executive Director of Digital Rights Nepal, emphasized the need for timely policy updates and tax reforms to drive Nepal’s telecom sector growth. Speaking at TechPana’s event on February 20, 2025, he highlighted how tax policies in Pakistan, Bangladesh, and India have boosted user base and GDP growth, urging Nepal to follow suit.
Sigdel criticized delays in updating telecom policies, noting that Nepal still operates under a 1997 law while global technology rapidly advances. He called for regulations on AI, IoT, and OTT services, a simplified license renewal process, and an investment-friendly climate to attract foreign direct investment (FDI). He also stressed the need for effective spectrum policies, cybersecurity measures, and improved service quality, warning that outdated laws could hinder Nepal’s digital and economic progress.

24 Indians Arrested for Rs 1.64 Billion Online Gambling in Nepal
Nepal Police arrested 24 Indian nationals from Budhanilkantha, Kathmandu, on February 17 for conducting online gambling worth Rs 1.64 billion through a betting app. The Kathmandu Valley Crime Investigation Office made the arrests public on February 18.
Preliminary investigations revealed that the suspects used a betting site, communicated with Indian agents via WhatsApp and Telegram, and operated the illegal gambling business from a rented house in Nepal. They have been sent to the District Police Complex, Kathmandu, for legal action under Section 125 of the Criminal Code, 2074 BS, and the Foreign Exchange (Regulation) Act, 2019.

 

Exploring the E- Justice in Nepal: Current Status and future Prospects
The report “Exploring E-Justice in Nepal: Current Status and Future Prospects” by FWLD and UN Women highlights Nepal’s legal framework for e-justice, including provisions in laws such as the National Criminal Procedure Code,2017 and National Civil Procedure Code, 2017 that allow video conferencing for statements and testimonies. However, implementation has been limited due to resource constraints and technical expertise gaps. The COVID-19 pandemic accelerated digital adoption, but courts still face challenges such as a backlog of cases, limited infrastructure, and resistance to change.
Full read at: https://fwld.org/wp-content/uploads/2023/05/Exploring-the-E-Justice-System-in-Nepal-1.pdf
Digital Rights Weekly is a week-based update on Digital Rights and ICT issues, that happened throughout the week, compiled and analyzed from the digital rights perspective by Digital Rights Nepal (DRN). DRN is a not-for-profit initiative dedicated to the protection and promotion of digital rights, including the right to online freedom of expression and association, online privacy, access to information, and related issues such as internet governance, cyber laws/policies, and cyber securities in Nepal.
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