Nepal, May 12 -- Authorities in Nepal are investigating the controversial auction of assets belonging to Smart Telecom, but the case has triggered a much larger legal battle over whether the government can claim ownership of the company's infrastructure without also accepting responsibility for its debts and liabilities.

The Central Investigation Bureau (CIB) has arrested three individuals, alleging that Smart Telecom's telecommunications infrastructure had already become government property after the company's telecom license was canceled and the Nepal Telecommunications Authority (NTA) took control of its operations. According to investigators, the subsequent auction of those assets amounted to an illegal sale of state-owned property ...