Stakeholders' claim that the existing laws and regulations could not be implemented when the government made provisions only in the budget without amending them
The government's plan to allow foreign nationals to buy 'apartments' has been stalled. Stakeholders say that the government could not implement the provisions in the budget without amending existing laws and laws.
The government for the first time in the budget statement for the financial year 2072/73 stated that foreign citizens will be allowed to buy apartments in Nepal.
From the next fiscal year, arrangements will be made for foreign citizens to purchase apartments in Nepal through an easy process,'' it is stated in the 39 points of the budget statement for the fiscal year 2072/73. But it has not yet been implemented.
In the financial year 2079/080, the government said that it would make a legal provision to allow foreign citizens to sell in foreign currency. "A legal provision will be made to allow the private sector to sell a maximum of 20 percent of the apartments with more than 100 units to foreign citizens in foreign currency," the budget statement for the financial year 2079/80 states. The government said that where there are more than 100 (flat) units in one apartment, more than 20 units can be sold.
The private sector has also been saying that arrangements should be made to allow foreigners to sell apartments. They argue that because of this, foreign currency will come in and the economy will also run. Bhesraj Lohani, the former president of the Nepal Land and Housing Development Federation, said that even though the government has started to bring arrangements for foreign citizens to buy apartments, it has not been implemented.
'In many countries foreign citizens have already started to be offered as 'second home', it is appropriate, but it could not be implemented in Nepal,' he said, 'not only buying houses and people come, but capital, skills, resources and means. also comes Therefore, it is appropriate. Lohani says that even though the government has introduced a provision to allow the purchase of only 20 percent of apartments with 100 units, the implementation has been delayed.
The Confederation of Nepal Industry (CNI) started the 'Budget Watch' program as a form of public-private sector dialogue from the financial year 2079/80. According to the Budget Watch of the financial year 2079/80, out of the 62 points in the economic sector mentioned in the budget, only 11 points were fully implemented, 29 points were partially implemented and 22 points were zero in the budget watch report of the Confederation.
The confederation said that procedures should be formulated and issued immediately to allow foreigners to purchase apartments in foreign currency, to re-buy and sell apartments purchased in foreign currency whenever they want, and to sell apartments purchased in foreign currency in domestic currency after a certain period of time. The Confederation said that regulation 8(1) of the Immigration Act, 2049 and the Immigration Regulations, 2051 should be amended to grant non-tourist visas to foreigners buying apartments.
Even if the government arranges for foreign citizens to be allowed to purchase 'apartments', it is mentioned in the Civil Code, 432 of 2074 that immovable property cannot be transferred to foreigners. In 432 (1) of the Code, it is mentioned that immovable property cannot be transferred to a foreigner without the prior approval of the government, but in the case of a person who has acquired non-resident Nepali citizenship, it is in accordance with the prevailing law.
But both of these are yet to be implemented. In 432 (2) of the Code, contrary to (1), it is clearly written that if someone transfers any immovable property to a foreigner, the related document will automatically be canceled and such property will belong to the Government of Nepal. The Ministry of Urban Development formed a 7-member committee to study the suggestions and other arrangements related to land and housing development and find out the issues that need to be reviewed and submit a report with the improvements that need to be made.
The committee formed under the coordination of Dilip Bhandari, joint secretary of the ministry, has suggested that it would be appropriate to arrange for a certain percentage of the total housing units proposed in the joint housing building to be sold to non-resident Nepalis (NRNs).
In the report submitted by the committee to Urban Development Minister Prakashman Singh on December 5, the committee made this suggestion regarding the arrangements for selling joint housing units to foreign nationals. For implementation, it is mentioned that there should be a related provision in the Joint Housing Ownership Act, 2054 and other related laws.
Real estate businessman Kalu Gurung said that although it is written in the budget that foreigners can buy apartments, there is no procedure to implement it. "Procedures have not been made, we are saying in various agencies of the government," he said, "Foreign currency is brought into the country, all the goods and services needed for daily life are bought and sold. It will increase the economic activity.'
It is in the CNI's report 'Reform in the law, the foundation of a prosperous economy' that sub-section 2 should be added after sub-section 1 of section 10 of the Joint Housing Ownership Act, 2054. Section 10 of the Act stipulates that housing unit owners can sell and rent housing units.
