Land Act, 2021 (1964)

This Act is called the Land Act, 2021. It applies throughout Nepal and came into force on the date fixed by the Government of Nepal by notification.

In this Act 'landowner' means a person whose name is recorded as owner in the land records, and 'tenant' means a person who cultivates land belonging to another under an agreement or established practice.

Land is classified into agricultural, residential, commercial, industrial, forest and public categories. Use of land contrary to its classification requires permission of the concerned authority.

A person or family may not hold more than the ceiling fixed for each region: ten bigha in the Terai, twenty-five ropani in the Kathmandu Valley and seventy ropani in other hill areas. Residential land is allowed in addition within set limits.

Land held by industrial enterprises, educational institutions, cooperatives and religious trusts for their own purposes is exempt from the ceiling with approval of the Government of Nepal.

Land held in excess of the ceiling is acquired by the Government against compensation and distributed to landless persons in the prescribed order of priority.

A person who has cultivated land belonging to another for at least one full crop year with the owner's knowledge is recognised as a tenant. The tenant's name is recorded in the land records.

Tenanted land is divided equally between the landowner and the tenant on application by either party to the Land Revenue Office. Each becomes full owner of their share.

A tenant may not be evicted except by order of the competent authority on grounds specified in this Act, such as failure to pay rent for two consecutive years or leaving land uncultivated.

Rent payable by a tenant may not exceed half of the main annual crop. Any agreement to pay higher rent is void.

The Land Revenue Office of each district maintains records of ownership, tenancy and encumbrances for every plot. Records may be kept and accessed electronically.

The registered owner of a plot is issued a land ownership certificate, commonly known as the lalpurja. The certificate is evidence of ownership but the official record prevails in case of conflict.

Land may not be transferred where it would cause the buyer to exceed the ceiling, where a court has ordered a freeze, or where a public body has given notice of acquisition. Transfers to foreign nationals require government approval.