Land subdivision halted again in 363 local levels over classification delays

Land subdivision has been halted again in 363 local administrative units across Nepal, as most failed to complete mandatory land classification by the deadline. This suspension reverses a temporary measure that allowed subdivisions under amended land use regulations.

The federal government had extended the deadline for municipalities and rural municipalities that had not classified their land. However, the majority did not finish the process before the new fiscal year began in mid-July, leading to the current halt.

According to the Ministry of Land Management, Co-operatives, Federal Affairs and General Administration, only 390 of Nepal's 753 local levels have successfully completed land classification. The Land Use Act of 2019 requires these local bodies to categorize land into ten types, including agricultural, residential, and industrial, using federal government data.

While subdivision transactions are suspended, other land dealings like transfers, inheritance, and partitions remain unaffected. This marks the third instance of subdivision being stopped due to classification delays, with previous halts occurring in 2025 and September 2024, affecting hundreds of local levels each time.