KATHMANDU: The government has made it mandatory to classify land as cultivable (agricultural sector) or non-agricultural sector to keep the land as collateral in a bank or financial/cooperative institution while registering the land in a person’s name.
The Ministry of Land Management, Cooperatives and Poverty Alleviation has written a letter to the National Land Commission, Department of Land Management and Records and Department of Survey instructing them not to pass the land until the land’s boundary is demarcated.
The land can be registered in a person’s name only after classifying it whether it is cultivable or non-agricultural land.
With this decision, getting loans from the bank by keeping the land as collateral is not permitted.
The Ministry has stated that for the purpose of determining the classification, the agricultural land and non-agricultural sector should be classified on the basis of the criteria prescribed by the Local Land Use Council, Land Use Act, and Land Use Rules, 2079 BS.
The Ministry will have to make a recommendation to the local level for the purpose as per the decision.
If any company or an individual has obtained permission to plan the land from the official body for residential purposes before the implementation of Land Use Regulations, 2079, this new rule will not be applied.
Once the land has been classified by the Local Land Use Council, the decision of the Land Use Council will not be necessary to re-allot the land as per the criteria.
The land-use area of each lot will have to be updated in the land owner registration certificate.
The updating will not be charged.
In addition, the ministry has stated that the directive issued earlier by the ministry regarding the plotting of arable land has been revoked.
Banks and financial institutions have given loans of Rs. 31.58 trillion by keeping the land as collateral to the real estate operators till mid-April.
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