Banks and financial institutions have been required to sell their land within three years.

लगानी न्यूज

२१ बैशाख २०८३, सोमबार २१:४४May 4, 2026

. KATHMANDU: The Supreme Court (SC) has scrapped the legal provision requiring banks and financial institutions to sell land taken as collateral for security within three years if they cannot be auctioned.

A constitutional bench comprising Acting Chief Justice Sapana Pradhan Malla, Justices Kumar Regmi, Hari Prasad Phuyal, Manoj Kumar Sharma and Dr Nahakul Subedi today annulled the clause 12 (f) added to the Land Act, 2021 through the Act to amend some Nepal Acts related to investment facilitation.TAG_OPEN_div_10

With the abolition of this provision, banks and financial institutions are compelled to sell their land within three years if no one agrees with the auction of land.TAG_OPEN_div_8

Advocate Sagar Adhikari and others filed a writ petition naming the Office of the Prime Minister and Council of Ministers as the defendants against the provision stating that the Act was issued in contravention with the Constitution of Nepal.TAG_OPEN_div_6