SC orders not to implement govt. decision to restrict loan disbursement

KATHMANDU, JUNE 21: The Supreme Court (SC) on Monday issued an interim order to the government not to implement its decision of barring the banks and financial institutions from floating loans on the basis of land as collateral. A single bench of Justice Ishwar Prasad Khatiwada made such an order considering the Land Use Regulations, 2022. While issuing the verdict, he said that stopping the loan disbursement will have an unfitting impact on the citizens’ fundamental rights. As per the SC’s interim order, the government is asked not to implement its decision until the case was settled.

The SC has ordered that the provision of loan reimbursement from the banks and financial institutions should not be stopped as the classification of land from the government was not likely to happen soon.

Earlier, the Ministry of Land Management had written to its line agencies preventing the sale of land plots without determining the agricultural land by clearly mentioning four directions of the land. 

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