Nepal Land Reform Squatters Sudhan Gurung Balendra Shah Dashain 2026 Urban Development

Nepal's Home Minister Pledges Permanent Land Solutions for Squatters After Major Clearance Campaign

Home Minister Sudhan Gurung confirms the government is prioritizing long-term land ownership for squatters, with certificates expected by Dashain following PM Shah's massive riverbank clearance.

Apple Nepal

Nepal is moving toward a definitive resolution for its long-standing squatter crisis, with Home Minister Sudhan Gurung declaring that the government is working "seriously" on a permanent solution for landless citizens. Speaking at the Nepal Electricity Authority training center in Kharipati, Bhaktapur, Gurung addressed families currently residing in temporary housing, emphasizing that landless challenges are now a top government priority requiring immediate, permanent action .

From Eviction to Ownership: The New Timeline

This commitment follows a dramatic shift in strategy under Prime Minister Balendra Shah, who launched a massive clearance campaign in May 2026. The operation deployed bulldozers and heavy security forces to demolish unauthorized settlements along the Kathmandu Valley riverbanks, Pokhara lakeside, and Butwal areas . While the clearance was contentious, the government has pivoted to a rehabilitation-focused approach, with Minister for Physical Infrastructure Development Sunil Lamsal promising that genuine squatters will receive land ownership certificates by Dashain this year .

The process has accelerated under the government's 100-day action plan, which prioritized land measurement, data collection, and the identification of genuine squatters from the very first Cabinet meeting . Lamsal assured citizens that land-related issues would be resolved in the coming months, urging them to refrain from protests while the administrative work continues .

Policy Framework and Legal Reforms

The government's approach is backed by a comprehensive policy document unveiled by President Ram Chandra Poudel during a joint session of the Federal Parliament. The policy explicitly mandates reforms to land and settlement laws to ensure long-term settlement arrangements for squatters . Key provisions include:

  • Secure Housing Management: Addressing issues for landless Dalits, squatters, and unmanaged settlers in unsafe areas through proper housing management .
  • Ownership Rights: A commitment to identifying genuine landless people and ensuring them permanent housing and ownership rights .
  • Integrated Settlement Projects: Implementing projects with land-use planning, infrastructure, and community services to manage scattered high-risk settlements .

Historical Context and Challenges

The issue of squatters and unmanaged settlers in Nepal is a complex, decades-old challenge that has persisted despite various government attempts . Previous policy iterations, such as Point 69 and Point 70 of the annual programme, promised affordable housing and integrated settlements, yet activists have frequently questioned the government's commitment, noting that key questions over land rights and housing security often remained unanswered .

International bodies like UN-Habitat have supported Nepal's land reform initiatives since 2013, aiding in the enactment of the Land Use Act and the Land Act (Eighth Amendment) to improve land governance . Despite this long history, the current administration's push for Dashain certificates marks a significant acceleration in the timeline for permanent rehabilitation .

As the government moves forward, the focus remains on distinguishing "genuine" squatters from unauthorized occupants to ensure resources reach those most in need, a critical step in transforming temporary relief into permanent security for Nepal's marginalized communities .