Land Ownership Limits in Nepal: What They Are and How They Are Enforced

Following the recent public disclosure of assets by ministers in the new government, many have started discussions about land ownership limits. According to current Nepali law, no individual is allowed to own more land than the area specified by the state. The Land Related Act, 2021 defines the maximum landholding an individual or their family can possess as the land ownership limit. Ganesh Prasad Bhatt, spokesperson for the Ministry of Land Management, Cooperatives, and Poverty Alleviation, explained that not only the Land Related Act, 2021 but also an amendment made in 2058 BS (2001-2002 AD) has imposed stricter limits on landholding compared to previous regulations. Although the Land Related Act, effective from Mangsir 1, 2021 BS (mid-November 1964), has undergone several amendments, its fifth amendment specifically revised the old landholding limits to new regulations solely for the purpose of land ceiling enforcement.

As per the Land Related Act, 2021, land ownership limits vary depending on the region. From Mangsir 1, 2021 BS until Shrawan 32, 2058 BS (approximately mid-November 1964 to mid-September 2001), individuals were permitted to own up to 25 Bighas (approximately 16.7 hectares) of land nationwide. However, the fifth amendment reduced this ceiling to 10 Bighas. For example, in the Kathmandu Valley, individuals could previously hold up to 50 Ropanis (approximately 2.5 hectares), but after the amendment, this limit was halved to 25 Ropanis. Elsewhere in the hill regions outside Kathmandu Valley, the previous limit of 80 Ropanis has been decreased to 70 Ropanis. The Act also allows for additional landholdings for the individual’s immediate family for residential purposes. In the entire Terai region, including the inner Madhesh, the limit was reduced from 3 Bighas to 1 Bigha. In Kathmandu Valley, an additional 8 Ropanis could be held previously, which the amendment now caps at 5 Bighas, and outside the valley in hill areas, the former limit of 16 Ropanis is now restricted to 5 Ropanis.

The Act also specifies restrictions on land held under the status of a tenant (mohis). According to the Land Related Act, 2021, a tenant can only hold land in a limited capacity: (a) up to 4 Bighas in the entire Terai region including inner Madhesh, (b) up to 10 Ropanis in Kathmandu Valley, and (c) up to 20 Ropanis in hill regions outside the Kathmandu Valley. There are some provisions for exemptions under specific circumstances where the government can grant concessions. Spokesperson Bhatt also noted that Articles 7 and 10 of the Act specify situations where the land ceiling limits do not apply.

Officials from the Ministry of Land Management, Cooperatives, and Poverty Alleviation have stated that with the country’s shift to digital systems, the regulation process has become simpler. “Previously, without a digital system, we had limited knowledge and had to require the involved parties to declare land transactions,” said spokesperson Bhatt. “Now, if a landowner attempts to transact land exceeding the ownership limit, our digital system automatically detects and blocks such transactions.”