The Ministry of Culture, Tourism and Civil Aviation has scrapped the license of Hotel Yak and Yeti to operate the casino.

Issuing a statement, Mohan Bahadur GC, Director at the Tourism Department, said that the ministry has also scrapped the 5-star rating certificate of the hotel.

Hotel Yak and Yeti has been accused of not paying royalty despite issuing the notice over and over again in the past.

According to the department, the hotel owes Rs 422.586 royalty to the Nepal government.

The ministry had issued a license in the name of the hotel to operate the casino on January 6,1992. 

"The government decided to scrap the license as per the casino regulation 2070 (14) after the hotel failed to clear outstanding payments owed to the government," the statement read.

The government has also decided to hold the immovable asset and freeze all the bank accounts until the hotel pays the amount.

The government has urged not to operate the casino and hotel.