The Nepal Land and Housing Development Federation has informed the government about the issues that business operators are facing due to legal complications related to land plotting and demarcation. Federation President Vishnu Prasad Ghimire has urged the government to amend laws related to demarcation and to refrain from imposing unnecessary actions on business operators, emphasizing the need for policy reforms to stimulate the economy. Businesspeople have highlighted the importance of establishing clear and long-term policies for land plotting to ensure transparent and organized land transactions. (25 Shrawan, Kathmandu)
Due to legal restrictions concerning land demarcation, plotting, and transactions, real estate business operators have been compelled to endure significant challenges. President Ghimire of the Nepal Land and Housing Development Federation stated that policy reforms are essential to invigorate the land and housing sector. The federation, during an event held on Monday, drew the government’s attention to the need for legal and policy facilitation in the real estate and housing sector.
President Ghimire called on the government to amend the land demarcation laws promptly to resolve ongoing issues. He remarked, “Due to the government’s control-oriented policies, the land and housing sector is encountering difficulties.” Although a 2021 legal amendment allows licensed real estate and housing development companies to purchase additional land in residential areas for housing business, the same law prohibits selling, distributing, or transferring land exceeding the demarcation limits, which has caused problems for operators.
Dipak Kunwar, Vice President of the federation, noted that the government’s control-centric policies have immobilized assets valued at two hundred billion rupees. Approximately 7,000 customers have faced legal obstacles in the transfer of houses and land, further complicating matters for business operators. President Ghimire added, “While the law permits real estate companies to hold additional land, it simultaneously restricts the sale or transfer of that land, which is impractical.”
Ghimire emphasized, “Clear legal provisions allowing the lease and management of land beyond demarcation limits must be enacted without delay. It is imperative to create an environment where long-pending land and residential projects can be legally transacted with ease.” The federation has also advocated that properties held for years, even without complaints regarding demarcation, should be approached from a solution-oriented perspective.
The federation recommends that the government’s priority should be to address these issues and activate economic activities rather than intimidating business operators. The federation highlighted that frequent amendments and decisions in land-related laws have generated prolonged uncertainty regarding land plotting. To provide long-term resolution, it has proposed that the government formulate clear, sustainable, and practical policies.
