A recent government decision barred land to use as collateral to get a bank loan. Until government classifies it as agricultural or non agricultural.
It delighted Australia-bound pupil Monika Gurung when the Supreme Courtroom struck down a latest authorities choice. This preventing borrowers from putting up land as collateral pending land use classification.
On Monday, the country’s highest court issued an interim order telling the government not to apply this provision in the land use regulations.
For Gurung from Lamjung and hundreds of other students aspiring to go abroad. The stipulation let down. it meant they couldn’t get a bank loan without which they can’t pay for their studies.
Last Thursday, Monika’s father Amar Gurung had gone to the Land Revenue Office in Lamjung to complete the paperwork needed to get a bank loan. But they sent back him due to the latest government decision.
The decree said the can’t use the land as collateral till it had categorised as agricultural or non-agricultural land. Accordingly, banks began turning away debtors wishing to take a mortgage towards their land as safety.
In a bid to stop haphazard use of land, the Ministry of Land Management issued a 12-point decision to facilitate the enforcement of the Land Use Act 2019 and Land Use Regulations 2022.
The court said that since the provision violated the fundamental rights of citizens. The interim order has issued not to implement the government decision.
