Industry Dept confirms Kaymu into online shopping

KATHMANDU, Feb 25:

Director General of the Department of Industry (DoI), Maheshwor Neupane, has confirmed that Kaymu Nepal Private Limited has been operating online shopping, which is not the stated purpose in the license issued to the company established with 100 percent foreign direct investment. A monitoring team from DoI, which visited the company offices at local Naxal, found that the company was operating with different purposes than what it was permitted.

Following the monitoring, Neupane said, “The company is operating with different purposes from what is allowed and we have summoned its officials to furnish clarifications within two days as to why they are engaged in business that was not permitted.”

The company officials have also been asked to furnish their sources of revenue or invoice bills. Section officers at DoI Nawaraj Nepal and Jorsingh Majhi and chemical engineer Sunil Kumar Yadav carried out the monitoring.

Republica had carried a news report headlined ´Kaymu Nepal working illegally as trade agent´ on February 14, in which it stated that the company ran online shopping covering over 32 countries and has been operating illegally as a trade agent.

DoI had issued permission to the company only for software and website development, which is recognized by law as an industry. DoI clearly stated in the permit that the company is not allowed to carry out online marketing. Online marketing, online shopping or any such business is not listed among the industries covered by the Industrial Enterprise Act, and the Foreign Investment and Technology Transfer Act bars foreign investment in non-industrial enterprises.

The logic behind allowing foreign investment only in industries is that such investment will result in job creation and increase production in the country. The proposed Industrial Enterprise Bill, which is currently at the cabinet, also has not listed trading as an industry.

Source: Republica