Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Kathmandu Metropolitan City (KMC) has lifted the construction ban on private riverbank land after the Supreme Court’s full bench partially overturned a previous order requiring an additional 20 meters of land clearance along rivers. The decision clarifies that while building permits on private land will not be issued, ongoing construction projects will no longer face stoppage or demolition orders.
The move comes after a long-standing legal dispute in which KMC was among the respondents. According to a public notice issued Wednesday, the metropolitan has emphasized that no new construction permits will be blocked on private properties and no enforcement actions will be taken against existing structures along riverbanks.
Previously, based on a decision on Mangsir 1, 2080 BS (mid-November 2023), KMC had prohibited construction on an additional 20 meters of land beyond the standard river setback established by the 2065 BS (2008) Cabinet guidelines, citing safety and regulatory concerns. This notification had caused a halt in map approvals, construction suspensions, and disruption in land transactions along riverbanks.
However, on Sunday, the Supreme Court full bench ruled that the earlier joint bench decision mandating the extra 20-meter clearance, minimum setbacks for unmeasured rivers, and declaring such zones as “construction prohibited” were not legally enforceable. The court also concluded that prior structures could not be compulsorily acquired for compensation purposes under the original ruling.
Based on this latest verdict, KMC has clarified that construction activities on private riverbank plots will no longer be halted. The metropolitan has urged citizens, homeowners, and business owners not to be uncertain about ongoing or future projects in these areas.
Legal experts note that had the previous joint bench order been fully enforced, a significant number of homes and structures in the Kathmandu Valley would have faced demolition, imposing an estimated NPR 21 billion in compensation and redevelopment costs. This had previously triggered protests by riverbank residents and prompted government re-evaluation.
Residents along riverbanks have welcomed the Supreme Court’s decision and KMC’s subsequent notice as relief, though experts highlight that the original 2065 BS setback guidelines remain in effect, and the long-term implications and enforcement mechanisms will become clearer once the full text of the court order is published.
This development is seen as a key legal and urban policy update for Kathmandu, balancing river safety regulations with property rights and urban development priorities.
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