Laws · Analysis

Acquiring private property for public use: three Acts from 2013, 2019 and 2034 cover overlapping ground

Laws Analysis

Research candidate — not legal advice. This is a starting point for lawmakers and legal reviewers, drawn from official reports. It has not been reviewed by a qualified lawyer and does not establish that any law is invalid or that a loophole exists.

Outdated provisionMedium confidenceEnacted ActReform recommendation

The Immovable Property Requisition Act 2013, the Compensation Act 2019 and the Land Acquisition Act 2034 all let the Government of Nepal acquire private property for public purposes and set compensation, each in its own way. The High-Level Economic Reform Suggestion Commission said the three cover the same purpose, called the Compensation Act wholly irrelevant, and recommended merging the other two into a new "Private Property Acquisition Act" that also covers shares and intangible property. Article 25(3) of the Constitution leaves the basis and procedure of compensation to an Act.

Laws and sections involved

  • जग्गा प्राप्ति ऐन, २०३४ · Land Acquisition Act, 2034 s.3, s.3क, s.4, s.13, s.16, s.43
    Our paraphrase: the Government may acquire any land anywhere for a public purpose on paying compensation under this Act (s.3); provinces and local levels must ask the Government to acquire land for them, bearing the cost (s.3क); compensation types and assessment are in ss.13–16; s.43 repealed the Land Acquisition Act 2018 but not the 2013 or 2019 Acts.
    Law Commission consolidated text (royal seal 2034/05/22); seven amending Acts listed, the latest the Some Nepal Acts Amendment Act 2082 (2082/04/14). s.3 on PDF p.2; s.43 on PDF p.17. Official text
  • अचल सम्पत्ति अधिग्रहण ऐन, २०१३ · Immovable Property Requisition Act, 2013 s.3
    Our paraphrase: where immovable property (buildings with attached land and fixtures) is needed for public work of the federal, provincial or local government, the Government of Nepal may acquire it after notice and a 35-day objection period (s.3).
    Law Commission consolidated text (royal seal 2013/5/16); four amending Acts listed, the latest the Act to amend some Nepal Acts to conform to the Constitution 2075 (2075/11/19). s.3 on PDF p.3. Official text
  • क्षतिपूर्ति ऐन, २०१९ · Compensation Act, 2019 ss.2(क), 3, 4, 7
    Our paraphrase: "property" means any property acquired or to be acquired under Nepal law (s.2(क)); the Government may acquire any property needed for a public purpose, an officer fixes compensation, and the Government's decision on a complaint is final (s.3); compensation may be paid in government stock instead of cash (s.4), redeemable within 20 years at no more than 5 per cent interest (s.7).
    Law Commission consolidated text (royal seal 2019/12/30); one amending Act listed (2066/10/7). ss.2–7 on PDF pp.1–2. Official text
  • नेपालको संविधान · Constitution of Nepal Art.25(1) explanation, 25(2), 25(3)
    Our paraphrase: "property" includes all movable and immovable property and intellectual property; the State shall not acquire property except for a public purpose; and when it does, "the basis and procedure of compensation shall be as provided by an Act".
    Law Commission text of the Constitution of Nepal (Gazette 2072/06/03, as amended). Art.25 on PDF p.13. Official text

The apparent issue

Three pre-1990 Acts, none repealing the others, give the Government acquisition powers for public purposes with different scope (land; buildings; "any property"), different procedures, and different compensation rules (including payment in 20-year government stock under the 2019 Act). It is not clear from the texts which Act governs a given acquisition, and only the 2019 Act's wording ("any property") could arguably reach shares or intangible property, though it was not written with these in mind.

Evidence

  • The Commission said there are three Acts for the same purpose — the Immovable Property Requisition Act 2013, the Land Acquisition Act 2034 and the Compensation Act 2019 — that the Compensation Act appears linked to compensation for birta land and is wholly irrelevant, and that the 2013 and 2034 Acts should be merged into a new law suited to current needs. High-Level Economic Reform Suggestion Commission Para 9, printed pp.85–86 (PDF pp.152–153); recommendation 33(ङ), printed p.93 (PDF p.160)
  • The Commission said that the Immovable Property Requisition Act lets only the Government of Nepal acquire, so provinces and local levels must ask it; that in practice that Act is used for buildings and the Land Acquisition Act for land; and that no current law provides a procedure or compensation method for acquiring shares or intangible property, which may be needed for national security or public interest. It recommended a new "Private Property Acquisition Act" covering intellectual property, intangible property and shares or ownership of an entity. High-Level Economic Reform Suggestion Commission Para 23, printed p.90 (PDF p.157); executive summary recommendation 26, printed p.XIV (PDF p.17)
  • The three Acts and Article 25 were read in the Law Commission texts. The Land Acquisition Act 2034 repealed only its 2018 predecessor (s.43); the 2013 and 2019 Acts remain listed with their own acquisition powers. Nepal Law Commission See laws for pages

Possible readings

  1. Reading 1 (the Commission's view): the three Acts duplicate one another; the 2019 Act is obsolete, and a single modern Act should replace the 2013 and 2034 Acts and add shares and intangible property.
  2. Reading 2: the Acts are complementary rather than conflicting — land (2034), buildings and their contents (2013), and a general compensation mechanism including payment in stock (2019) — and the special-over-general principle tells officials which to use.
  3. Reading 3: because the Compensation Act 2019 speaks of "any property" and Article 25 now defines property to include intellectual property, it may already allow acquiring shares or intangibles; but its 35-day complaint to the Government, final decision by the Government and payment in long-term stock may not meet current standards of fair compensation and judicial review.

Why it matters in practice

Overlapping, older procedures can make acquisition slower and compensation less predictable, and may draw challenges under Article 25. Provinces and local levels depend on the federal Government for every acquisition. If the Compensation Act is repealed without a replacement, any remaining basis for acquiring non-land assets in an emergency would also go.

Hypothetical example

Hypothetical: a municipality needs a plot of land with an old house on it for a health post. Officials debate whether to proceed under the Land Acquisition Act (for the land), the Immovable Property Requisition Act (for the house) or both, and the owner is unsure which compensation rules and appeal route apply.

Possible improvements and trade-offs

  • Merge the 2013 and 2034 Acts into a single acquisition Act covering land, buildings, shares and intangible property, and repeal the Compensation Act 2019 (the Commission's recommendations).
    Clear single framework that can implement Article 25(3); a large drafting task that touches resettlement, provincial and local roles, and the sensitive question of acquiring shares.
  • Repeal only the Compensation Act 2019 now, with a transitional rule for any stock still outstanding, and consolidate the other two later.
    Quick, low-risk tidy-up; leaves the main overlap in place.
  • Keep the Acts but add a provision stating which Act governs which kind of property and allowing provinces and local levels to acquire under their own laws.
    Smaller change; leaves dated procedures in force.

Questions for legal review

  1. Is any part of the Compensation Act 2019 (final Government decision; compensation in 20-year stock) consistent with Article 25(3) and the right to judicial remedy?
  2. Can a province or local level acquire property under its own law, or must it always use the federal Acts through the Government of Nepal (Land Acquisition Act s.3क)?
  3. Does any current Act allow acquiring shares or intellectual property for a public purpose, and on what compensation basis?

Research status

Researched
2026-10-12
Confidence
Medium confidence — All three Acts and Article 25 were read and the overlap is visible in the texts; a government commission states it directly. Confidence is not high because the Acts can also be read as complementary, and the land-acquisition rules and recent practice were not reviewed.
Review
Not yet reviewed by a qualified lawyer.

Still unresolved

  • The Land Acquisition Rules 2026 and Immovable Property Requisition Rules 2016 were not read.
  • Whether the Compensation Act 2019 has been used in recent decades, and whether any stock under it is outstanding, is not known.
  • Any land acquisition bill or draft under consideration by the Government was not searched for.

Sources

  1. उच्चस्तरीय आर्थिक सुधार सुझाव आयोगको प्रतिवेदन: आर्थिक सुधारको मार्गचित्र (Report of the High-Level Economic Reform Suggestion Commission: Roadmap for Economic Reform) Checked 2026-10-11
  2. जग्गा प्राप्ति ऐन, २०३४ (Land Acquisition Act, 2034) — consolidated Nepali text Checked 2026-10-11
  3. अचल सम्पत्ति अधिग्रहण ऐन, २०१३ (Immovable Property Requisition Act, 2013) — consolidated Nepali text Checked 2026-10-11
  4. क्षतिपूर्ति ऐन, २०१९ (Compensation Act, 2019) — consolidated Nepali text Checked 2026-10-11
  5. नेपालको संविधान (Constitution of Nepal) — Nepali text Checked 2026-10-11