The vast portfolio of assets under the Nepal Trust has raised questions about whether the institution is managing them to their full potential. The Nepal Trust holds more than 21,633 ropanis of land across 12 districts, along with approximately Rs 2.18 billion in bank deposits and foreign currency, as well as 1.3 million shares in banks and corporations. Its portfolio includes historic landmarks, commercial properties, and land leased to private companies and government agencies. The Trust earned approximately Rs 229.81 million from rent, lease payments, interest, dividends, entry fees, and service charges in the fiscal year ending in mid-July 2026. Trust officials argue that these assets are being utilized to generate revenue while advancing the institution’s mandate. Approximately half of the income earned from its deposits is spent on administrative costs, property maintenance, the preservation of heritage and tourist sites, and biodiversity conservation. The remaining funds are reinvested to generate additional returns. The Trust also oversees properties such as Durbar Mall on Durbar Marg, Gokarna Forest Resort, Kathmandu Plaza, and the Solti Outer Complex. Some of these lease arrangements have raised concerns about the rents charged and the returns generated from valuable public assets.
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However, a large portfolio and steady income do not necessarily mean that the Trust is extracting the maximum value from its assets. Established after the abolition of the monarchy, the Nepal Trust was entrusted with managing the assets of former King Birendra Shah and other royal family members who were killed in the 2001 palace massacre. The Nepal Trust Act, enacted in 2007, provides the legal framework for identifying, recovering, and managing these assets. Its responsibilities extend beyond merely collecting rent. The Trust is required to safeguard the assets, preserve their historical and environmental significance, enhance their value through lawful means, and ensure that every decision serves the public interest. The Nepal Trust Act must remain the primary benchmark for evaluating the institution’s performance. The legislation establishes the framework for managing the assets entrusted to it. In the past, the Trust may have appeared to function primarily as a rent-collecting entity. Today, however, its responsibilities include preserving assets, protecting their historical and environmental significance, increasing their value through legitimate means, and ensuring that decisions are made in the public interest. The Act should therefore serve as the standard against which the Trust’s success is measured. Asset management practices must comply with the law to protect public property and prevent loss, misuse, or mismanagement. Leasing property may be a sound commercial strategy. However, such arrangements require careful scrutiny. Durbar Mall, for instance, was leased to Thamserku Trekking Company under a build-own-operate-transfer model for Rs 45 million annually for a 30-year period, including three years allocated for construction, following dispute-resolution arbitration over rent for an additional floor. The public has a right to know how the lease term, rent, and other conditions were determined; whether alternative bids were invited; and how the Trust, as a custodian of public assets, assessed the long-term value of the agreement.
Allegations that some Trust properties have been leased at exceptionally low rates should be thoroughly investigated. Within the limits of the law, the Trust should make public lease agreements, valuation reports, tender notices, submitted bids, and the rationale behind tenant selection. Independent audits and periodic reviews should assess whether rents reflect market rates and whether tenants have fulfilled their contractual obligations. Where lease arrangements no longer represent fair value, the Trust should consider pursuing appropriate legal remedies. It must also evaluate each property individually to determine its most suitable public purpose, whether commercial, tourism-related, conservation-oriented, or focused on preserving heritage and the natural environment. Heritage sites should not be viewed solely as sources of revenue, nor should commercially valuable land be left underutilized. The Trust plans to introduce a new strategy and seek legislative reforms. Parliament and the government must hold the institution accountable by requiring annual reporting on asset valuations, leasing revenues and expenditures, investment returns, and conservation efforts for public scrutiny. Ultimately, the Trust must demonstrate that it is protecting these assets, administering them fairly and transparently, and generating returns that are commensurate with their historical, cultural, and environmental significance.
