Land subdivision halted in 333 local units in Nepal — Kathmandu Post
In Nepal, the subdivision of land plots into smaller parcels has been suspended in 333 local units that have not completed land classification by use. The federal government is preparing the fourth amendment to the 2022 Land Use Regulations to ease the restrictions, The Kathmandu Post reports.
Ganesh Prasad Bhatta, spokesperson for the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration, said that the draft amendment has already been sent to the Ministry of Finance for approval. After receiving approval, it is to be sent to the Ministry of Law, while the changes will take effect only after approval by the Cabinet of Ministers.
Classification completed by 420 units
Under the 2019 Land Use Act, local land use councils must classify land and ensure the implementation of relevant policy based on maps and data provided by the government. Land must be divided into ten categories, including agricultural, residential, industrial, forest, mining and commercial areas.
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So far, only 420 local units have completed the classification. They have determined land use designations for ten types of use, including agriculture, industry and residential development. The sale of entire plots, the division of property among family members, transfers pursuant to court decisions and corrections to land records remain permitted.
Restrictions imposed repeatedly
The government has already amended the rules several times, temporarily allowing plot subdivision in local units where classification has not been completed. At the same time, after missed deadlines, the restrictions were reinstated each time. In August 2026, plot subdivision was halted in 390 local units, and in 2025, in 500. In September 2024, restrictions on land administrative services were in force in 620 units.
The ministry reported that 176 local units had prepared data at the level of individual land plots, while another 130 had defined the necessary criteria and updated maps. Bhim Prasad Dhungana, a representative of the Municipal Association of Nepal, said that many communities lack funds and technical specialists: carrying out the work costs at least 1.5 million to 2 million rupees. The Office of the Auditor General also called for providing local authorities with the necessary resources and coordinating classification with the Department of Survey.
