Justices Kalyan Shrestha and Om Prakash Mishra ruled that no interim order need be issued as demanded by Nirola since the Commission for the Investigation of Abuse of Authority (CIAA) had also called for his suspension and that the matter would be taken up at the final hearing of the petition.

Nirola had petitioned the court on October 31 last year after the PAC issued a directive to the Tourism Ministry to suspend him on October 22.

On Wednesday, the anti-graft body had extended his suspension. The CIAA also plans to file a corruption case against him.

A preliminary CIAA investigation has revealed that Nirola embezzled around Rs 500 million in the name of tourism promotion when he was at the helm of the NTB. The CIAA has also directed the Tourism Ministry to produce Nirola before it.

Subsequently, the 196th board meeting of the NTB on October 30 suspended Nirola from the posts of officiating CEO and director charging him with misusing millions of rupees in tax money.

Irregularities resulting in the loss of millions of rupees have been revealed in an investigation report submitted by a seven-member government panel to the ministry.

The NTB had amended its financial bylaws to allow it to award contracts without competitive bidding even though the Public Procurement Act (PPA) says tenders should be called before doing so.

Under the amendments to the Financial Bylaws that give sweeping powers to the NTB boss to dispense cash, the CEO can spend up to Rs 10 million at a time for tourism promotion activities inside the country.

Similarly, the chief can spend $400,000 at a time outside the country without following any due process of the PPA. The CEO has also been given the power to spend up to $400,000 at a time through honorary representatives and firms.

The bylaws also allow the CEO to purchase goods on a piecemeal basis and appoint the internal auditor of the board. The amended financial bylaws were kept hidden for more than six months. They were brought to light by travel trade entrepreneurs.