SC halts Nepal Airlines CEO appointment amid legal, ethical and election-period controversies



Kathmandu: A decision by former justice Anil Kumar Sinha at the Ministry of Culture, Tourism and Civil Aviation has spiralled into major controversy over the appointment of a new Managing Director of Nepal Airlines Corporation (NAC).

The process has become entangled in five separate disputes, raising legal, ethical, and procedural concerns at a sensitive political moment.

Two cases challenging the appointment are now before the Supreme Court, while a separate complaint has been filed with the Commission for the Investigation of Abuse of Authority. Critics argue that the selection process moved ahead despite provisions in the Nepal Airlines Act that disqualify serving employees from applying, and despite the national election code of conduct already being in force. Together, these issues have cast a shadow over the legitimacy of the recruitment.

On Thursday, the Supreme Court of Nepal issued an interim order suspending the Managing Director selection process. Alongside the order, the Court demanded written explanations from the authorities, effectively freezing the procedure at its current stage until a final verdict is reached.

The court acted on a petition arguing that the process continued even after the election code came into effect and that ineligible internal staff were allowed to apply. The petition was filed by Chiranjivi Upadhyay, and a single bench led by Justice Binod Sharma ordered the halt while also issuing a show-cause notice to the Tourism Ministry.

The selection committee, coordinated by the Tourism Ministry’s secretary, had opened applications through open competition in late November and received 16 applications by mid-December. Even before the deadline, former NAC employee Achyut Raj Pahadi had filed a separate petition claiming the selection guidelines were flawed, including objections to age limits and what he described as attempts to sideline qualified experts. The Court had earlier ordered that process not to proceed, pending review.

Despite the case being prioritized by the Court with a final hearing scheduled for mid-February, officials allegedly pushed forward with the recruitment. After a change in ministry leadership, the new secretary, Mukunda Prasad Niraula, advanced the process, shortlisting 10 candidates and calling them for interviews and presentations earlier this week.

According to the ministry, the committee has completed interviews and plans to recommend three names to the Cabinet for final appointment. Ministry spokesperson and NAC board member Jayanarayan Acharya said the committee’s role is only to complete preliminary work and forward recommendations.

He argued that even under the election code, the government could proceed with approval from the Election Commission, and that whether to wait for the court decision is ultimately a political choice, not a procedural barrier for the committee.

The shortlist includes senior NAC captain Dipu Jwarchan and customer service chief Tankanidhi Dahal, both current employees. Legal experts note that Section 8 of the Nepal Airlines Corporation Act, 1969 clearly states that any serving employee or advisor of the corporation, other than the Managing Director, is ineligible for the post unless they resign first. Nonetheless, the committee allowed them to compete.

Out of the 16 applicants, only 10 made the shortlist. Those excluded have now filed a complaint with the anti-corruption body, alleging abuse of authority and irregularities, claiming that individuals barred by law were treated as eligible while others were unfairly sidelined.