Govt’s efforts for transparent real estate sector stalled

Published On: September 19, 2022 01:30 PM NPT By: Bhuwan Sharma

KATHMANDU, Sept 19: The government's preparations to make real estate transactions transparent and orderly through companies have come to a standstill with the end of the term of the House of Representatives.

The Ministry of Land Management, Cooperatives and Poverty Alleviation had prepared to deal with real estate only through recognized companies. To implement this provision, the government has to amend the Land Acquisition Act 2034 BS. But the term of the House of Representatives ended while the ministry was preparing to amend the law. This means that the government's efforts to conduct real estate transactions through companies during this term of parliament has been stalled.

Earlier, the ministry formed a task force under the coordination of joint secretary of the ministry, Janak Joshi, to study and submit a report on conducting real estate transactions through registered companies. The task force had studied the situation and prepared a report. According to the report, the government had also prepared a draft to amend the Land Acquisition Act 2034 BS.

According to the suggestion of the task force, in the draft prepared by the government, it was proposed to take permission from the government to conduct real estate transactions from now on.

In the proposal, it was stipulated that permission should be obtained for real estate transactions and the government should appoint a representative to conduct the transactions. In order for companies or organizations that want to deal in real estate to get permission, the government should publish a notice in the gazette and provide information in the draft.

Similarly, a provision has been made in the draft to impose a fine of up to one million rupees if it is known that real estate transactions have been carried out without permission from the federal government or the provincial government. It is stipulated that companies or organizations that have received permission to deal in real estate should do business within the specified limits or areas.

Pitambar Ghimire, director general of the land management department and a member of the task force, said that if real estate transactions are conducted only through recognized companies, the process will be systematic and transparent and there will be a real record of land valuation.

"If real estate transactions are done through a company, the real value must be shown," Ghimire told Republica. The amount of revenue that should be raised from this has not been raised.

Along with this, the task force is studying whether to implement the system of starting business all at once or to do it step by step, and it is also studying the issue of how much to keep in the name list, purchase and sale, transaction limit and revenue collection.

Under the Department of Land Management, there are 126 land administration offices across the country. All the post offices across the country have started online service. As all offices have started online services, the data on everyday real estate transactions across the country and the revenue generated from that is coming to the center.

The department has prepared to establish five more land administration offices apart from the existing 126 offices. According to Director General Ghimire, in the current fiscal year 2079/80, preparations are being made to add cargo offices at Balara in Sarlahi, Dhalkebar in Dhanusha, Narainapur in Banke, Simraungadh in Bara and Gadasera in Doti. In those places, the surveying department established surveying offices eight years ago. The offices opened by the survey department have not been able to come into operation because the land administration office has not been established.

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