Land Parceling Halt Impacts Revenue; Classification Increases Burden on Local Governments
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Nearly two weeks have passed since land parceling was halted across 363 municipalities nationwide. The Ministry of Land Management, Cooperative, Federal Affairs, and General Administration states that parceling has been stopped in these municipalities because they have not complied with the land use regulations or performed the necessary land classification.
Bhim Prasad Dhungana, chairperson of Dhadhing Nilkantha Municipality and president of the Nepal Association of Municipalities, said that the halt in parceling has significantly impacted local government revenues.
“Without land transactions, local governments cannot collect the revenue they are due,” he explained. “Moreover, with ongoing budget cuts under fiscal equalization, local governments are becoming increasingly weakened day by day.”
According to Puran Chaudhary, chief of the Survey Office in Dang Ghorahi, last year it was already announced that parceling would be stopped for any municipality that did not complete land classification by the end of Ashad (mid-July), following the Land Use Regulation.
“Other services continue and land sharing certificates are still being issued,” he added, “however, with parceling stopped, the land revenue office will not send registration documents either.”
Since the Land Use Regulation 2079 was first published in the Gazette on Jestha 23, the Ministry of Land Management, Cooperative, Federal Affairs, and General Administration has annually halted and resumed parceling activities.
The federal government has been revising the regulation each year to reopen parceling within the same fiscal year.
When Will Parceling Resume?
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According to Ganesh Prasad Bhatt, spokesperson for the Ministry of Land Management, Cooperative, Federal Affairs, and General Administration, no discussions about reopening parceling have started this year.
“Since land transactions generally decrease in the month of Saun, complaints have been minimal,” he said. “We are striving to encourage municipalities to complete their classification processes. Therefore, no discussions have taken place about reopening parceling yet.”
However, he added that if classification cannot be completed and land administration is disrupted, the government will need to decide on amending the regulation.
Bhim Prasad Dhungana, president of the Nepal Association of Municipalities, said they have informed the ministry and received a response that discussions will take place.
The law requires land to be classified into 10 different groups.
These include agricultural, residential, commercial, industrial, mining and minerals, forest, river-rivulet-lake-wetland, public use, cultural and archaeological significance, as well as other categories assigned by the Government of Nepal as needed.
Provinces are responsible for classification based on geographic location, land capability, and requirements. The Ministry of Land Management, Cooperatives, and Poverty Alleviation must prepare the land use zoning maps and details for each local government.
The regulations also mandate including mapping with an analysis of potential risks on the classified land.
Why Is Classification Challenging?
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Laxmi Devi Pandey, president of the Rural Municipality National Federation Nepal, shared that classification is a highly complex process.
Pandey, chairperson of Hupsekot Rural Municipality in Nawalparasi (Bardaghat Susta East), said it took her municipality a full year to complete classification.
“We held meetings in every ward, created maps, and spent six months discussing the drafts,” she said. “We coordinated with the Survey Office and others to finalize the process. Hence, skilled personnel and technical support are essential.”
In some locations, landowners prefer to reclassify agricultural land as residential due to road access, thereby facilitating easier sales, which is an observed trend.
With market expansion and growth in residential areas, the complexity in classifying such zones has increased.
Meena Kumari Lama, mayor of Hetauda Metropolitan City, reported that after receiving similar complaints from wards, the city issued notices for revisions.
“Complaints were received from wards 16 and 17,” she remarked. “Further studies will determine whether these areas are actually not residential.”
Leaders of local governments have criticized the central government’s hurried classification decisions without comprehensive studies.
The regulation allows local governments to update their land use maps as needed through local land use councils.
If new categories must be created, the local land use council must recommend this to the provincial council, which in turn recommends it to the federal council.
“Burden on Municipalities Without Proper Study”
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If a new land category transformation is required, the local land use council must recommend it to the provincial council, and the province must then recommend it to the federal council.
Every land parcel must include classification details within the registration documents and land ownership records. In other words, details for each parcel must be regularly updated.
Yadav Prasad Pathak, deputy mayor of Ratnanagar Municipality, Chitwan, said delays have occurred due to insufficient support from the federal government.
“There are irregularities here,” he said, noting an overreliance on Survey Office staff, “This is beyond our capacity alone.”
Bhim Prasad Dhungana, president of the Nepal Association of Municipalities and mayor of Dhadhing Nilkantha Municipality, responded that although the transfer of the Land Revenue and Survey Offices to local governments was agreed upon, it has not been fully implemented.
“With current resources and manpower, no municipality can complete classification on time. Imposing this burden without detailed ground-level study and pushed by the federal government is a heavy load for many municipalities,” he said.
He emphasized that the central and provincial governments must coordinate effectively, considering the necessity, justification, and capacity of municipalities.
“Classification is neither an easy task nor one to be rushed,” he said. “The government must abandon the mindset that classification is solely a local government responsibility and instead foster cooperation. Only then will the work succeed, and the yearly pattern of halting and reopening parceling will end.”
