chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

19. Functions, Duties and Powers of the Faculty Council: The functions, duties and powers of the Faculty Council shall be as follows:

(a) to specify the basis and process for student selection and the number of seats based on the qualification determined by the Academic Council for student admission,
(b) to recommend to the Academic Council for creating new honorary degrees, adding, amending, altering or abolishing them,
(c) taking the opinion of Subject Committees, to recommend to the Academic Council for determining, approving and amending the curriculum of subjects related to the School,
(d) to recommend to the Examination Management Office for specifying the type of examination related to the School's academic program, making changes, examining conditions and other arrangements,
(e) to determine and evaluate the infrastructure and facilities required for academic programs to be operated or being operated in Colleges,
(f) to give necessary directions or guidance to Subject Committees, and
(g) other subjects that the Dean deems necessary to be decided by the Faculty Council. 20. Subject Committee: (1) There shall be a Subject Committee in each Teaching Department to assist in the work of the Faculty Council. Explanation: For the purpose of this Section and Section 21, "Teaching Department" means the central body conducting academic programs on a disciplinary basis.

(2) The Subject Committee shall be constituted as follows:

(a) Head, Teaching Department - Coordinator
(b) Two persons from among teachers - Member
(c) Two persons from among teachers of related subjects from other universities - Member

(3) The members pursuant to clauses (b) and (c) of Sub-section (2) shall be nominated by the Dean on the recommendation of the Head of the concerned Teaching Department.

(4) The term of office of members pursuant to Sub-section (3) shall be two years, and they may be re-nominated.

(5) The procedure of meetings of the Subject Committee shall be as determined by the Subject Committee itself. 21. Functions, Duties and Powers of the Subject Committee: The functions, duties and powers of the Subject Committee shall be as follows:

(a) to recommend to the Faculty Council for determining, approving and amending the curriculum of subjects related to the Teaching Department,
(b) to prepare and recommend the format of course content and grid of question papers to the Faculty Council,
(c) based on the qualification determined for student admission, to recommend to the Faculty Council the minimum qualification, basis and process for selection, and number of seats for student entry, and
(d) to develop and recommend to the Faculty Council the evaluation system and tools for academic and research-related programs conducted in Colleges. 22.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

22. College: (1) The University may establish and operate constituent Colleges.

(2) While establishing a College pursuant to Sub-section (1), it may be established so that there is one College in each province based on necessity.

(3) The University may, subject to Sub-section (2), establish and operate a Constituent College in collaboration or partnership with a province or local level or cooperative organization.

(4) In the Colleges established and operated pursuant to Sub-sections (1), (2) and (3), academic programs of different disciplines may be conducted.

(5) Other provisions relating to the operation of Colleges shall be as prescribed. 23. Operation of Teaching Hospital: (1) A College conducting an Ayurveda or Alternative Medicine program shall operate a Teaching Hospital as an integral part thereof.

(2) While operating a Teaching Hospital pursuant to Sub-section (1), it shall be done according to the standards determined by the Medical Education Commission constituted under the prevailing law.

(3) The procedure relating to the operation of the Teaching Hospital shall be as prescribed. 24. Establishment and Operation of Research Centre: (1) The University shall establish and operate Research Centres as required to conduct research and innovation related activities in the fields of Ayurveda, Yoga, Meditation and Alternative Medicine.

(2) The University may conduct research and innovation related activities in coordination and collaboration with government, cooperative, private sector and local community.

(3) The benefits obtained from research and innovation related activities pursuant to Sub-section (2) shall be distributed based on knowledge, skill and investment utilized.

(4) The procedure relating to the operation of the Research Centre shall be as prescribed. 25. Establishment and Operation of Production Centre: (1) The University shall establish and operate Production Centres as required for the collection, processing and production of plants, herbs or other biological resources for the purpose of producing and marketing Ayurvedic medicines.

(2) The Production Centre pursuant to Sub-section (1) may collaborate with government, cooperative, private sector and local community for the utilization and promotion of traditionally prevalent knowledge and skills, establishment and operation of herb gardens, herb processing and medicine production, and entrepreneurship development.

(3) The University may, subject to the prevailing law, keep wildlife for the purpose of Ayurvedic medicine production.

(4) The Production Centre shall perform activities including quality testing and control, branding, and determination of selling price of goods produced by it for the purpose of selling such goods.

(5) Other provisions relating to the operation and marketing of the Production Centre shall be as prescribed. Chapter-8
Officers, Teachers and Employees of the University

26.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

Chapter-8
Officers, Teachers and Employees of the University

26. Chairperson: (1) The Chairperson of the University Council shall be selected pursuant to Sub-section (10) of Section 7.

(2) The Chairperson shall be the head of the University and the Chairperson of the University Council.

(3) The Chairperson shall preside over the convocation ceremony of the University.

(4) The Chairperson may inspect the University and give necessary directions as required.

(5) The term of office of the Chairperson shall be four years, and while calculating his/her term, the period of membership in the University Council shall also be added and calculated.

(6) The service facilities of the Chairperson shall be as prescribed. 27. Vice-Chancellor: (1) There shall be a Vice-Chancellor in the University to perform functions as the executive head of the University.

(2) Amended by the Good Governance Promotion and Public Service Delivery related Some Nepal Acts Amendment Act, 2081.The Chairperson shall appoint the Vice-Chancellor after completing the process pursuant to Section 29.

(3) The term of office of the Vice-Chancellor shall be four years, and he/she may be re-appointed for one more term.

(4) The remuneration, facilities and other terms of service of the Vice-Chancellor shall be as prescribed. 28. Qualification of Vice-Chancellor: A person possessing the following qualification shall be qualified to be appointed as Vice-Chancellor:

(a) having obtained at least a master's degree from a recognized university,
(b) having at least ten years of experience in the academic field,
(c) having demonstrated excellent managerial skills and acumen in the field of educational or academic advancement,
(d) having completed thirty-five years of age, and
(e) having a high moral character. 29.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

29. Recommendation Committee: (1) The University Council shall constitute a Recommendation Committee, including at least one woman, as follows for the appointment of the Vice-Chancellor:

(a) A member of the University Council designated by the University Council - Coordinator
(b) One person nominated by the University Council from among persons in the field of Ayurveda, Yoga, Meditation or Alternative Medicine - Member
(c) One person nominated by the University Council from among professors of the University or persons related to education, management or academic administration - Member

(2) The Recommendation Committee pursuant to Sub-section (1) shall publish a public notice for the purpose of inviting applications from domestic or foreign persons who meet the qualification for the post of Vice-Chancellor.

(3) From among the candidates who submitted applications according to the notice published pursuant to Sub-section (2), a shortlist of three to seven eligible candidates shall be prepared and such candidates shall be invited for interview and presentation.

(4) Based on the interview and presentation of candidates pursuant to Sub-section (3), the Recommendation Committee shall recommend the name of the most suitable candidate to the University Council for appointment to the post of Vice-Chancellor.

(5) The Chairperson shall appoint the person recommended pursuant to Sub-section (4) to the post of Vice-Chancellor within fifteen days.

(6) Other procedures relating to the appointment of the Vice-Chancellor shall be as prescribed. 30.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

30. Functions, Duties and Powers of the Vice-Chancellor: (1) In addition to the functions, duties and powers mentioned elsewhere in this Act, the functions, duties and powers of the Vice-Chancellor shall be as follows:

(a) to implement or cause implementation of the decisions and directives of the University Council,
(b) to generally control and supervise all work and activities of the University,
(c) to give directions within his/her jurisdiction on matters related to the University's work and activities,
(d) to coordinate, monitor and evaluate or cause evaluation of programs conducted by the University and submit reports thereof to the Executive Council,
(e) to cause submission of proposals that need to be submitted to the University Council,
(f) to determine or cause determination of short-term and long-term programs for the development of the University,
(g) to arrange necessary resources for the University,
(h) to maintain or cause maintenance of financial discipline, economy and transparency,
(i) to manage, secure and protect or cause management, security and protection of the University's property,
(j) to perform other functions except those stated to be performed by any body or officer under this Act or the Rules made under this Act,
(k) to analyze and address and manage complaints related to the University, and
(l) to perform other functions assigned by the University Council.

(2) The Vice-Chancellor shall inform the University Council of any policy decision or related work done pursuant to clause (j) of Sub-section (1). 31. Registrar: (1) The Registrar shall be a full-time officer of the University.

(2) Amended by the Good Governance Promotion and Public Service Delivery related Some Nepal Acts Amendment Act, 2081.The Registrar shall be appointed by the Chairperson on the recommendation of the Recommendation Committee pursuant to Sub-section (1) of Section 29.

(3) The term of office of the Registrar shall be four years.

(4) The remuneration, facilities and other terms of service of the Registrar shall be as prescribed. 32. Qualification of Registrar: A person possessing the following qualification shall be qualified to be appointed as Registrar:

(a) having obtained at least a master's degree from a recognized university,
(b) having at least eight years of experience in the field of academic or educational administration,
(c) having demonstrated excellent managerial skills and acumen in the field of educational or academic advancement,
(d) having completed thirty-five years of age, and
(e) having a high moral character. 33.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

33. Functions, Duties and Powers of the Registrar: (1) In addition to the functions, duties and powers mentioned elsewhere in this Act, the functions, duties and powers of the Registrar shall be as follows:

(a) to perform tasks related to teacher and employee administration of the University,
(b) to conduct or cause operation, accounting and auditing of the University's fund,
(c) to formulate and implement or cause implementation of policies and plans related to internal administration,
(d) to prepare and implement or cause implementation of policies and plans related to the financial administration of the University,
(e) to perform necessary tasks regarding the management, protection and operation of the University's property,
(f) to prepare or cause preparation of the estimated income and expenditure of the University,
(g) to inspect all bodies under the University, including Schools, Colleges, Research Centres, Production Centres, and to correct any deficiencies found in administration and management, and to take departmental action against employees,
(h) to oversee, control and manage examinations conducted by the University,
(i) to perform functions as per the direction of the Executive Council and the Vice-Chancellor.

(2) While performing functions pursuant to Sub-section (1), the Registrar shall act under the general direction and control of the Vice-Chancellor. 34. Removal from Office: (1) One-third of the members currently holding office in the University Council may submit a written petition to the Chairperson, with evidence, stating that the Vice-Chancellor has failed to fulfill his/her official responsibilities, has not conducted himself/herself in accordance with the office, or has done any act contrary to the interest of the University.

(2) The Vice-Chancellor may recommend to the University Council for the removal of the Registrar from office stating that he/she has done any of the acts mentioned in Sub-section (1).

(3) Upon

(4) Certificates, degrees Amended by the Act to Amend Some Nepal Acts, 2082. and other provisions relating to recognition shall be as prescribed. 50. Eligibility Required for Student Enrollment: The eligibility of students and researchers required for enrollment in the University shall be as prescribed. 51. Operation of Pre-qualification Educational Programs: For the enhancement of student access to bachelor's or higher level educational programs operated by the University, the University may, on its own or in collaboration or partnership with local levels or other associations or institutions, after obtaining approval from the concerned body, operate pre-qualification educational programs. 52.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

52. Free Higher Education and Scholarships: (1) Higher education shall be free for Dalit, marginalized, persons with disabilities, and economically disadvantaged students enrolled in the University or its constituent colleges under its jurisdiction.

(2) The facility pursuant to sub-section (1) may be availed of by a student only once at each level.

(3) Notwithstanding anything written in the prevailing law, seats shall be reserved for Dalit students for enrollment in technical and vocational higher education, along with a free scholarship as prescribed.

(4) The University shall make provision for higher education for the sons and daughters of martyrs, disappeared persons, Madhesis, indigenous nationalities, women, and persons with disabilities in accordance with the provision in the prevailing law.

(5) A student who has studied in grades nine and ten in a community school shall receive a scholarship in higher education in accordance with the prevailing law. 53. Not to Grant Affiliation or Approval: Since the University has its own constituent colleges, it shall not grant affiliation or approval to other educational institutions. 54. Proceedings Not to be Invalidated: No proceeding of the University done involving a member or office-bearer of the University Council shall be invalidated merely by reason of a vacancy in the position of a member or office-bearer of the University Council or a defect in the appointment or nomination of a member or office-bearer of the University Council. 55. Annual Report: (1) The University Council shall, within three months from the date of expiry of each fiscal year, submit an annual report of the activities carried out by the University throughout the year to the University Grants Commission.

(2) The subjects to be included in the report pursuant to sub-section (1) shall be as prescribed.

(3) Upon receipt of the report pursuant to sub-section (1), the University Grants Commission shall submit the University's report, along with an analytical statement based on comparison with the University's targets in accordance with the agreement made between the University and the Grants Commission during grant determination, and the University's achievements, to the Ministry. 56. Prior Approval Required: The University shall, before approving posts or adding remuneration or service facilities for any office-bearer, teacher, researcher, or employee that creates a financial liability on the Government of Nepal, obtain approval from the Government of Nepal, Ministry of Finance, through the Ministry. 57. Formation of Committee: (1) The University may form committees as required.

(2) The functions, duties, and powers of a committee shall be as specified at the time of forming such committee. 58.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

57. Formation of Committee: (1) The University may form committees as required.

(2) The functions, duties, and powers of a committee shall be as specified at the time of forming such committee. 58. Rights Relating to Intellectual Property: (1) The rights relating to intellectual property obtained by the University on the basis of research, invention, production, or any other basis shall be secured with the University in accordance with the prevailing law.

(2) A researcher or other person involved in the acquisition of intellectual property, obtained on any basis such as research, invention, production, with the involvement of the University pursuant to sub-section (1), may be provided with identification or reward or a certain portion of royalty as prescribed. 59. Appointment or Nomination of Foreign Citizens or Non-Resident Nepali Citizens: A foreign citizen or non-resident Nepali citizen who can make significant contribution to the University may be appointed or nominated as a member of the University Council. 60. Not to Act in Case of Conflict of Interest: If any office-bearer nominated or appointed under this Act is seen to have a conflict of interest with the interest or concern of the University, he/she shall not be entitled to participate in such proceedings or decision-making process. 61. External Evaluation to be Conducted: (1) The University Council may, every three years, cause an external evaluation to be conducted on subjects including the activities carried out by the University, the use of means and resources, and the achievements obtained, as prescribed.

(2) The report of the external evaluation pursuant to sub-section (1) shall be submitted to the University Council.

(3) The University Council shall submit the evaluation report pursuant to sub-section (2) to the Government of Nepal through the Ministry within six months from the date of expiry of the three-year period.

(4) After the report pursuant to sub-section (3) is submitted to the Government of Nepal, the University shall make such report public. 62.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

62. Inspection and Inquiry and Issuance of Directions: (1) If the work or progress of the University does not appear satisfactory on the basis of the annual report pursuant to Section 55 and the external evaluation report pursuant to Section 61, the Ministry may form an inspection and inquiry committee as follows to inspect and inquire into the activities of the University, or cause such inspection and inquiry to be done:-

(a) Chairperson of the University Grants Commission or a member designated by him/her - Chairperson

(b) One person from among those who have made significant contribution in the fields of Ayurveda, Yoga, Meditation, and Alternative Medicine - Member

(c) One person from among those who have made significant contribution in the field of education - Member

(2) If the committee pursuant to sub-section (1), while conducting inspection and inquiry, submits a report with suggestions stating that the work of the University does not appear satisfactory, the Ministry may give necessary directions to the University to implement the suggestions mentioned in the report.

(3) It shall be the duty of the University to implement the directions pursuant to sub-section (2). 63. Delegation of Powers: (1) The University Council may, as necessary, delegate some of the powers conferred on it under this Act or the rules framed under this Act to the Academic Council, the Executive Council, or the Vice-Chancellor.

(2) The Academic Council may, as necessary, delegate some of the powers conferred on it under this Act or the rules framed under this Act to the prescribed body or committee.

(3) The Executive Council may, as necessary, delegate some of the powers conferred on it under this Act or the rules framed under this Act to any office-bearer or committee of the University.

(4) Any office-bearer of the University may, as necessary, delegate some of the powers conferred on him/her under this Act or the rules framed under this Act to any office-bearer subordinate to him/her. 64. Contact with Government of Nepal: When contacting the Government of Nepal, the University shall do so through the Ministry. 65. Measurement of Act Implementation: The Ministry shall measure the implementation of this Act within one year after the completion of five years from the commencement of this Act, and thereafter within one year after every five years, and shall submit the report thereof to the relevant committee of both houses of the Federal Parliament. 66. Consequences upon Dissolution: If the University is dissolved for any reason, the property and liabilities of the University shall devolve upon the Government of Nepal. 67.
Vidushi Yogmaya Himalayan Ayurveda University Act, 2022

66. Consequences upon Dissolution: If the University is dissolved for any reason, the property and liabilities of the University shall devolve upon the Government of Nepal. 67. Power to Make Rules: (1) For the implementation of this Act, the University may make rules on the following subjects:-

(a) Organization and academic administration,

(b) Financial management and procurement,

(c) Autonomy and decentralization, and

(d) Other subjects necessary for the implementation of this Act.

(2) When making rules pursuant to sub-section (1), if an additional financial burden falls on the Government of Nepal, the consent of the Government of Nepal, Ministry of Finance, shall be obtained. 68. Repeal and Saving: (1) The Vidushi Yogamaya University Infrastructure Construction Development Committee (Formation) Order, 2077 is hereby repealed.

(2) After the commencement of this Act, all assets and liabilities of the Vidushi Yogamaya University Infrastructure Construction Development Committee shall devolve upon the University.

(3) All acts and proceedings done under the Vidushi Yogamaya University Infrastructure Construction Development Committee (Formation) Order, 2077 shall be deemed to have been done under this Act. Schedule-1

(For the purpose of sub-section (2) of Section 3 and Section 46)

Arun Valley

 Sankhuwasabha District Bhojpur District Dhankuta District

 1. Khadbari Municipality, 1. Arun Rural Municipality, 1. Chhathar Jorpati Rural Municipality,
 2. Chichila Rural Municipality, 2. Pauwadungma Rural Municipality, 2. Pakhribas Municipality, and
 3. Chainpur Municipality, 3. Bhojpur Municipality, 3. Mahalaxmi Municipality. 4. Dharmadevi Municipality, 4. Shadananda Municipality,
 5. Panchakhapan Rural Municipality, 5. Salpa Silichho Rural Municipality, and
 6. Bhotkhola Rural Municipality, 6. Hatuwagadhi Rural Municipality. 7. Makalu Rural Municipality,
 8. Madi Municipality,
 9. Sabhapokhari Rural Municipality, and
 10. Silichho Rural Municipality. Schedule-2

(For the purpose of clause (e) of sub-section (2) of Section 7)

Serial List of Local Levels

1. Arun Rural Municipality, Bhojpur,
2. Chichila Rural Municipality, Sankhuwasabha,
3. Chainpur Municipality, Sankhuwasabha,
4. Chhathar Jorpati Rural Municipality, Dhankuta,
5. Dharmadevi Municipality, Sankhuwasabha,
6. Panchakhapan Rural Municipality, Sankhuwasabha,
7. Pakhribas Municipality, Dhankuta,
8. Pauwadungma Rural Municipality, Bhojpur,
9. Bhojpur Municipality, Bhojpur,
10. Bhotkhola Rural Municipality, Sankhuwasabha,
11. Makalu Rural Municipality, Sankhuwasabha,
12. Madi Municipality, Sankhuwasabha,
13. Sabhapokhari Rural Municipality, Sankhuwasabha,
14. Salpa Silichho Rural Municipality, Bhojpur,
15. Silichho Rural Municipality, Sankhuwasabha, and
16. Hatuwagadhi Rural Municipality, Bhojpur.
Direct Sale of Goods (Management and Regulation) Act, 2017

Direct Selling (Management and Regulation) Act, 2074

Certification and Publication Date
2074.7.1

Act Number 43 of the year 2074

An Act Made to Manage and Regulate Matters Relating to Direct Selling of Goods

Preamble: Whereas, it is desirable to make necessary provisions relating to regulating the business of direct selling or distribution of goods, making it reliable, transparent and competitive, and protecting the rights and interests of general consumers,

The Legislature-Parliament has enacted this Act in accordance with Sub-article (1) of Article 296 of the Constitution of Nepal. Chapter-1

Preliminary

1. Short Title and Commencement: (1) This Act may be called the "Direct Selling (Management and Regulation) Act, 2074".

(2) This Act shall come into force on the 91st day from the date of its approval by the Legislature-Parliament. Date of approval by the Legislature-Parliament: 2074.6.24. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Monitoring Committee" means the Monitoring Committee constituted pursuant to Section 30.

(b) "License" means the license granted pursuant to Section 5.

(c) "Licensee" means a company that has obtained a license pursuant to Section 5.

(d) "Company" means a company established pursuant to the prevailing law, and said term also includes the founder and director of such a company.

(e) "Directing Committee" means the Directing Committee constituted pursuant to Section 27.

(f) "Prescribed or as prescribed" means prescribed or as prescribed in the rules made under this Act.

(g) "Inspecting Officer" means the Inspecting Officer designated pursuant to Section 21.

(h) "Bank Guarantee" means a bank guarantee issued by a bank designated by the Department, under which the bank must make cash payment immediately upon demand by the Department.

(i) "Ministry" means the Ministry of Commerce.

(j) "Direct Seller or Distributor of Goods" means a person or representative who has completed at least eighteen years of age and is appointed by a licensee through an agreement for marketing or market promotion related to direct selling of goods.

(k) "Direct Selling or Distribution of Goods" means the act of directly selling or distributing goods made available by a licensee from a producer company or distributor company to a consumer.

(l) "Department" means the Department of Commerce. Chapter-2

Provisions Relating to License

3. Prohibition on Direct Selling or Distribution of Goods Without Obtaining License: No person shall, without obtaining a license under this Act, engage in or cause to engage in the business of direct selling or distribution of prescribed goods. 4.
Direct Sale of Goods (Management and Regulation) Act, 2017

Chapter-2

Provisions Relating to License

3. Prohibition on Direct Selling or Distribution of Goods Without Obtaining License: No person shall, without obtaining a license under this Act, engage in or cause to engage in the business of direct selling or distribution of prescribed goods. 4. Application for Obtaining License: (1) A company desiring to conduct the business of direct selling or distribution of goods shall submit an application to the Department in the prescribed format, stating the following documents or details:-

(a) Name of the company,

(b) Certified copy of the certificate of incorporation, memorandum of association, and articles of association,

(c) Copy of the Value Added Tax (VAT) registration certificate as per the prevailing law,

(d) Detailed business plan relating to direct selling of goods, profit sharing, commission sharing plan,

(e) Other details as prescribed.

(2) The paid-up capital of a company applying for a license under Sub-section (1) shall be at least one crore rupees. 5. Grant of License: (1) The Department may, upon studying the documents and details submitted with the application received under Section 4, if it appears appropriate to grant a license to such a company to conduct the business of direct selling or distribution of goods, grant a license in the prescribed format within ninety days from the date of receipt of the application, upon taking the prescribed license fee and at least fifty percent of the paid-up capital as cash deposit or a bank guarantee of equivalent amount.

(2) If, while studying the documents and details submitted with the application under Sub-section (1), it appears necessary to request additional documents or details from the applicant or to further clarify the documents or details submitted, the Department may order the applicant to submit such documents or details or to further clarify the documents or details submitted, specifying a time limit.

(3) If an order is made under Sub-section (2), the concerned applicant shall submit the required documents or details to the Department or further clarify the submitted documents or details within the prescribed period as per such order.

(4) While granting a license under Sub-section (1), the Department may prescribe additional necessary conditions besides the conditions mentioned in this Act and the rules made under this Act. 6. Non-Grant of License: (1) Upon studying the documents and details submitted with the application received under Section 4, if no reasonable basis and reason is found to grant a license, such a license shall not be granted to that applicant.
Direct Sale of Goods (Management and Regulation) Act, 2017

6. Non-Grant of License: (1) Upon studying the documents and details submitted with the application received under Section 4, if no reasonable basis and reason is found to grant a license, such a license shall not be granted to that applicant. The Department shall give written notice to the applicant within thirty days, stating the basis and reasons for not granting the license.

(2) An applicant dissatisfied with a decision made by the Department under Sub-section (1) may appeal to the Ministry within twenty-one days from the date of receipt of notice of such decision.

(3) If an appeal is filed under Sub-section (2), the Ministry shall decide within thirty-five days from the date of filing of the appeal. The decision made by the Ministry shall be final. 7. Order to Increase Paid-Up Capital or Add Deposit: (1) Notwithstanding anything contained in Sections 4 and 5, if the paid-up capital of a licensee and the deposit kept at the time of obtaining the license appear to have decreased in proportion to the increase in the business of the licensee, the Department may order the licensee to increase such paid-up capital or deposit additional deposit as required.

(2) If an order is made under Sub-section (1), the concerned licensee shall increase the paid-up capital of the company or deposit additional deposit within the time limit specified in the order of the Department.

(3) Other provisions relating to the determination of the increased paid-up capital and additional deposit amount under Sub-section (1) shall be as prescribed. 8. Provisions Relating to Validity Period and Renewal of License: (1) A license granted under this Act shall remain valid for two years.

(2) At least sixty days prior to the expiry of the license term under Sub-section (1), the licensee shall submit an application to the Department for renewal of the license in the prescribed format, along with the prescribed fee.

(3) Notwithstanding anything contained in Sub-section (2), an application for renewal may be submitted to the Department in the prescribed format at least fifteen days prior to the expiry of the license term, along with double the fee payable for renewal.

(4) Upon receiving an application for renewal under Sub-section (2) or (3), the Department shall renew the license for two years within fifteen days from the date of receipt of the application and inform the licensee accordingly.

(5) If the term of a license expires without renewal under this Section, such license shall be automatically cancelled. 9.
Direct Sale of Goods (Management and Regulation) Act, 2017

9. Grounds for Cancellation of License: (1) The Department may cancel a license granted under this Act in any of the following circumstances:-

(a) If the license is found to have been obtained by submitting false documents or details,

(b) If the paid-up capital is not increased or additional deposit is not made within the prescribed period as per the order of the Department under Section 7,

(c) If the business is conducted contrary to Section 11,

(d) If the business is conducted without entering into an agreement under Section 14,

(e) If the compensation payable to a consumer under Section 23 is not paid within the prescribed period,

(f) If the fine payable under Section 24 is not paid within three months,

(g) If an act punishable with a fine under Section 24 is committed for the third time within a period of two years,

(h) If any other act is done contrary to this Act or the rules made under this Act.

(2) Before canceling a license under Sub-section (1), the Department shall give the concerned licensee a reasonable opportunity to present his/her defense.

(3) A party dissatisfied with the Department's decision to cancel a license under Sub-section (1) may appeal to the concerned High Court within thirty-five days from the date of receipt of notice of such decision to cancel the license. 10. Provisions Relating to Transfer or Change of Ownership or Liability: (1) If a licensee desires to transfer or change the ownership or liability of its company, it shall submit an application to the Department for approval, stating the clear basis and reason thereof.

(2) If the content of the application received under Sub-section (1) appears reasonable, the Department may grant approval to transfer or change the ownership or liability of such company. 11. Prohibition on Pyramid-Based Business: Notwithstanding anything contained elsewhere in this Act, no person shall operate a pyramid-based business.
Direct Sale of Goods (Management and Regulation) Act, 2017

11. Prohibition on Pyramid-Based Business: Notwithstanding anything contained elsewhere in this Act, no person shall operate a pyramid-based business. Explanation: For the purpose of this Section, "pyramid-based business" means a business related to any of the following acts:-

(a) A networked activity where membership of any kind is mandatory before purchasing goods,

(b) A networked activity where purchasing one good requires purchasing other goods also in a single package,

(c) A networked activity where a person purchasing goods is unable to obtain goods equivalent to the amount paid or benefit if he/she fails to recruit another direct seller or distributor under him/her,

(d) A networked activity where only fees are charged by merely appointing direct sellers or distributors without any transaction of goods,

(e) A networked activity where the company, for the purpose of selling goods, offers attractive gifts that are commercially unreasonable and impossible, or creates a temptation of commission to make members or compel them to purchase expensive goods,

(f) A networked activity having a business plan that discourages retail sale of goods, or

(g) A networked activity where a good is sold or distributed by making someone believe that it is a supernatural good that will provide unexpected benefit or cure a disease proven incurable by medical science. Chapter-3

Provisions Relating to Conditions to be Followed by Licensee

12. Licensee to Comply with Conditions: In addition to this Act, the rules made under this Act, and the conditions mentioned in the license, the licensee shall comply with the following conditions:—

(a) While engaging in direct selling or distribution of goods, goods shall not be sold by creating packages that create unlimited liability,

(b) Binding provisions shall not be made requiring the purchase of a fixed quantity of goods, and depriving of bonus or commission under the licensee's business plan if such goods are not purchased,

(c) Consumers shall be allowed to purchase separate items as per their wish,

(d) The licensee shall not engage in the act of merely appointing direct sellers or distributors without transacting goods,

(e) Production, promotion, or sale/distribution of consumable goods of a nature that adversely affects the health of consumers shall not be done,

(f) Other conditions as prescribed. 13. Provisions Relating to Physical Infrastructure: (1) If separate physical infrastructure is required to conduct direct selling or distribution of goods, the licensee shall conduct business only after making arrangements for such physical infrastructure.

(2) Other provisions relating to physical infrastructure shall be as prescribed. 14.
Direct Sale of Goods (Management and Regulation) Act, 2017

13. Provisions Relating to Physical Infrastructure: (1) If separate physical infrastructure is required to conduct direct selling or distribution of goods, the licensee shall conduct business only after making arrangements for such physical infrastructure.

(2) Other provisions relating to physical infrastructure shall be as prescribed. 14. Agreement to be Made: (1) Before causing a direct seller or distributor to conduct transactions relating to direct selling or distribution of goods, the licensee shall enter into an agreement with him/her concerning the same.

(2) While entering into an agreement under Sub-section (1), the services, facilities, commission, or bonus receivable by the direct seller or distributor from the licensee for selling or distributing goods shall be clearly stated. 15. Details of Commission or Bonus to be Submitted: (1) The licensee shall determine the provisions relating to services, facilities, commission, or bonus receivable by a direct seller or distributor for direct selling or distribution of goods, and before implementing such provisions, shall submit the details thereof to the Department.

(2) The Department may give direction to modify the details submitted under Sub-section (1) as required, and the licensee shall comply with the direction given by the Department.

(3) If any change is made in the details determined under Sub-section (1), such changed details shall be submitted to the Department within thirty days of making such change. 16. Domestic Goods to be Sold or Distributed: (1) While engaging in direct selling or distribution of goods, the licensee shall sell or distribute at least fifty percent domestic goods. Provided that this provision shall not apply in respect of goods not produced in Nepal.

(2) Details of goods sold or distributed under Sub-section (1) shall be submitted to the Department within sixty days after the end of each fiscal year. 17. Right to Return Purchased Goods: (1) If a consumer is dissatisfied with the price, quality, quantity, or utility of goods purchased from a direct seller or distributor, he/she may return such goods to the concerned direct seller or distributor within thirty days from the date of purchase.

(2) If a consumer returns goods purchased under Sub-section (1), the licensee and the direct seller or distributor shall refund the remaining amount after deducting any service fee already collected at the time of selling or distributing the goods and taxes leviable under the law.

(3) The amount deducted as tax under Sub-section (2) shall be deposited at the concerned tax office.

(4) Other provisions relating to the return of goods purchased by a consumer shall be as prescribed. 18. Insurance to be Made: The licensee shall get the business of direct selling or distribution of goods insured in accordance with the prevailing law.
Direct Sale of Goods (Management and Regulation) Act, 2017

18. Insurance to be Made: The licensee shall get the business of direct selling or distribution of goods insured in accordance with the prevailing law. Chapter-4

Functions, Duties and Powers of the Department

19. Functions, Duties and Powers of the Department: In addition to the functions, duties and powers mentioned elsewhere in this Act, the other functions, duties and powers of the Department shall be as follows:—

(a) To grant licenses to conduct the business of direct selling or distribution of goods, subject to this Act and the rules made under this Act,

(b) To monitor and inspect licensees,

(c) To hear and address consumer complaints relating to direct selling or distribution of goods,

(d) To take action against licensees engaged in unfair business activities,

(e) To inform the general public about the business of direct selling or distribution of goods through various means,

(f) To perform other functions as prescribed. 20. Inspection or Investigation to be Made: (1) The Department shall regularly inspect or investigate the transactions of licensees and direct sellers or distributors of goods.

(2) If any person files a complaint in the prescribed format to the Department stating that he/she has suffered any loss, damage, or injury due to a licensee or direct seller or distributor of goods engaging in unfair trade practices to create a monopoly, affect the price or supply of consumable goods, or produce or sell/distribute substandard consumable goods, causing harm, loss, or damage to consumers or adversely affecting their rights and interests, or if there is a reasonable cause to believe that any act is being done or may be done contrary to this Act or the rules made under this Act, the Department may make or cause to make an inspection or investigation at any time.

(3) While making an inspection or investigation under Sub-section (2), if the content of the complaint appears reasonable or if any person is found to have done any act contrary to this Act or the rules made under this Act, the Department may itself take action against such licensee or direct seller or distributor in accordance with the prevailing law, or may send a letter to the concerned body for action. 21. Inspecting Officer may be Designated: (1) For the purpose of Section 20, the Government of Nepal may designate any gazetted officer to act as an Inspecting Officer.

(2) While designating an Inspecting Officer under Sub-section (1), his/her area of jurisdiction shall also be specified. 22.
Direct Sale of Goods (Management and Regulation) Act, 2017

21. Inspecting Officer may be Designated: (1) For the purpose of Section 20, the Government of Nepal may designate any gazetted officer to act as an Inspecting Officer.

(2) While designating an Inspecting Officer under Sub-section (1), his/her area of jurisdiction shall also be specified. 22. Functions, Duties and Powers of Inspecting Officer: (1) In addition to the functions, duties and powers mentioned elsewhere in this Act, the other functions, duties and powers of the Inspecting Officer shall be as follows:–

(a) If there is a reasonable cause to believe that a licensee or direct seller or distributor of goods is producing or selling/distributing unsafe, harmful, or substandard goods, or that any act is being done or may be done contrary to this Act or the rules made under this Act, to make necessary inspection or investigation regarding such act,

(b) While making inspection or investigation under Clause (a), if it is found that any harmful or substandard goods are being produced or sold/distributed, or any act is being done contrary to this Act or the rules made under this Act, or if there is a reasonable basis and reason that such act may occur, to search the place where such goods are stored and collect samples of such goods,

(c) While making inspection or investigation under Clause (a) or search under Clause (b), if it is found that any harmful or substandard goods are being produced or sold/distributed, or any act is being done contrary to this Act or the rules made under this Act, to prohibit the production or sale/distribution of such consumable goods for a prescribed period,

(d) To submit a report relating to the act done under Clauses (a), (b) and (c) to the Department within seven days.

(2) It shall be the duty of the licensee and the direct seller or distributor to provide the details or records demanded by the Inspecting Officer during the inspection, investigation, or search under this Section.

(3) The procedures to be followed during inspection, investigation, or search under Sub-section (1) and other provisions relating to the functions, duties and powers of the Inspecting Officer shall be as prescribed. 23.
Direct Sale of Goods (Management and Regulation) Act, 2017

23. Compensation may be Ordered: (1) If, from an inspection or investigation conducted under Section 20, any consumer is found to have suffered loss, damage, or injury, the Department may order the concerned licensee, direct seller, or distributor of goods to pay a reasonable amount as compensation to such consumer.

(2) Upon receiving an order under Sub-section (1), the licensee, direct seller, or distributor of goods shall provide the amount specified in such order to the concerned consumer within fifteen days of receiving the order and inform the Department thereof.

(3) If the compensation amount is not provided within the period under Sub-section (2), the Department shall provide the compensation amount to the aggrieved consumer from the deposit kept by such licensee. 24. Imposition of Fine: (1) The Department may impose a fine of fifty thousand rupees to one hundred thousand rupees on a licensee who transfers or changes the ownership or liability of the company without obtaining approval under Section 10.

(2) The Department may impose a fine of up to one hundred thousand rupees on a licensee who fails to comply with the conditions under Section 12.

(3) The Department may impose a fine of up to five hundred thousand rupees on a licensee or a direct seller or distributor of goods who does any act contrary to this Act or the rules made under this Act, or fails to comply with an order or direction given by the Department.

(4) If a licensee fails to submit a report required to be submitted under Section 45 within the prescribed period, except for a reasonable cause, or fails to give the notice required under Section 49, the Department may impose a fine on such licensee at the rate of one hundred rupees per day, up to a maximum of ten thousand rupees.

(5) If a direction or order given under Clause (b) and (c) of Section 31 is not complied with, the Monitoring Committee may impose a fine of up to one hundred thousand rupees on such licensee or direct seller or distributor of goods.

(6) If, during an inspection at the place of direct selling or distribution of goods, it is found that the price, quality, or quantity of goods has been tampered with, or a price list has not been kept, the Inspecting Officer may, depending on the circumstances, impose a fine of five thousand rupees to fifteen thousand rupees on such licensee, direct seller, or distributor of goods. If such act is repeated, double the fine may be imposed for each subsequent occasion. 25.