Around 400 activists captured the public land amid a program at Joriya Rihar in Ward No 3 of the VDC.
Meanwhile, police have stopped the Maoist cadres who were demarcating the area for distribution to squatters.
Around 100 policemen have been mobilized to stop the Maoists from capturing and distributing the land.
Banke SP Ram Chandra Dhakal said the police will not spare anybody taking the law into hands.
Central member of the association and Tharuwan coordinator Amar Pariyar said they will distribute the land to 1,000 squatters within a week no matter police have barred them from managing the land right now.
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