The Government of Nepal is set to suspend the division and registration of land plots in municipalities that have failed to classify land as required by the Land Use Regulation, 2022. The suspension will take effect from July 17, coinciding with the beginning of the new fiscal year 2025/26.
The move aims to curb haphazard plotting and unregulated land use, particularly in semi-urban areas, and promote systematic land management. As per the regulation, local governments must categorize all land into ten functional types—such as agricultural, residential, commercial, and industrial—before allowing further subdivision or transactions.
According to Ganesh Prasad Bhatta, spokesperson for the Ministry of Land Management, Cooperatives, and Poverty Alleviation, only 253 out of 753 local units have completed the mandatory classification so far. Another 153 municipalities are in the final stages, while the remaining units have yet to begin.
"From July 17 onward, land-related services such as ownership transfer, boundary demarcation, measurement, and approval of development projects will be suspended in municipalities that are non-compliant," Bhatta said. These services will resume only after the concerned local units implement the required land classification.
However, previously subdivided plots will not be affected. Transactions related to those plots—including sales, inheritance, and registration—will continue as usual.
This is not the first attempt by the government to enforce compliance. In September 2024, land plotting was temporarily suspended in 620 local units for over a month due to delays in land classification, disrupting several administrative functions.
In an effort to encourage timely implementation, the federal government extended the classification deadline multiple times. The latest extension, provided through a second amendment to the Land Use Regulation on September 12, 2024, gave local units until mid-July 2025 to finalize land categorization. With that deadline now expiring, the government is preparing to enforce stricter measures.
Originally, municipalities were expected to complete the task within six months of the regulation's introduction in August 2022. However, citing resource constraints, technical limitations, and difficulties in building local consensus, many local governments requested multiple extensions.
Some local units have faced public resistance during classification. For instance, in Dakshinkali Municipality near Kathmandu, the process was completed except in areas marked for mining due to opposition from residents. Mayor Mohan Basnet noted that agricultural land can be reclassified as residential if the required infrastructure—such as road access—is developed and the landowner submits a formal application.
The classification process has also been marred by allegations of manipulation. Officials at the Department of Survey say some municipalities falsely claim they have no agricultural land, possibly to appease voters. In Kathmandu Valley, Chandragiri and Nagarjun municipalities reported having no cultivable land, a claim officials say contradicts existing maps.
Read: Complexities of Land Use Regulation Exposed
