Land can be considered the most important resource in Nepal. The piece of land possessed by ascending the parental land property division is the predominant practice of land tenure in all parts of the country. The supply of land is limited, and it is a scarce resource. The issue, therefore, should be proper utilization and sustainable management of the land. The land is the principal factor for development in the agriculture sector in our country. Land ownership in Nepal has always been unequal. Such unequal ownership meant few households owned large tracts of land, which they leased out among poorer households for cultivation, while the majority remained as tenants with little or no land of their own. Until the 1960s, the land was held under various forms of tenure, such as radar, birth, and guthi, or the customary kipot system. Nepal’s land-reform legislation converted communal land (kipot) that had historically been held by indigenous groups into state land (raikar) in the 1950s. Land-reform legislation subsequently converted raikar into private land, and a 1967 amendment to the Land Act reasserted the abolishment of all communal land. Land in Nepal is classified as (1) private land; (2) state land; or (3) Guthi land. An estimated 28 percent of land in Nepal is privately held in ownership or under leasehold.
The most important and progressive land reform was enacted in 1964 A.D. ( i.e. 2021 B.S.). It abolished intermediaries collecting taxes, imposed land ceilings, and contained provisions for redistribution of surplus land above the ceilings to needy farmers and institutions, rent control, and other measures to improve the security of tenants, farming practices, and compulsory savings and credit by farmers. The Land Act (1964, amended 6 times) and its regulations: (a) abolishes the system of intermediaries collecting taxes from tenants by transferring control over taxation to District Land Revenue Offices and Village Development Committees (VDCs); (b) transfers land managed by the state into private land (raikar); (c) imposes ceilings on agricultural land; (d) limits rent to a maximum of 50 percent of the gross annual production of the main crop; (e) requires tenant certification, i.e., registration; (f) institutes a compulsory savings program; and (g) establishes a Commission on Land Use Regulation to address consolidation and division of land and boost farm cooperatives. The Land Reform Act – 2021 aims to divert ‘inactive’ capital and labor from land to other economic sectors, bring about an equitable distribution of cultivable land, improve the standard of living of ‘actual tillers’ who depend on land for their livelihood, and maximize agriculture production(preamble). This Act abolishes the zamindari system of land ownership (section 3). Ceilings on ownership are specified in section 7 and vary according to geographical location. The maximum size of an agriculture holding is 6.6 hectares, while the largest homestead may cover 0.66 hectares (section 7). Land over these ceilings is to be acquired by the ‘prescribed authority’ (section 15) upon payment of compensation (section 19). The land so acquired may be sold or re-allotted (section 21).
The name Guthi/Trust is borrowed from a traditional culture where Guthi means a committee where certain groups of people come together during the time of celebration or adversity. At that time, social service was limited and youth had fewer opportunities to get involved in such activities. Mahesh Chandra Regmi wrote the standard works on land tenure in Nepal. He reckoned that 4% of all cultivated land was held under Guthi land tenure at the end of the Rana period. The key distinction between Guthi land tenure and Guthis as an institution needs to be brought to the forefront. The law needs re-drafting with that in mind and making it 100% clear that there is no intention to interfere with or try to control private Guthis. The Guthi system is a trust, whereby land is donated to this trust. The main objective of the Guthi is to do welfare for the people by undertaking a religious activity such as the installation of an idol of god or construction of a temple. There are two kinds of Guthis in practice. They are RajGuthi (state-run Guthi) and Fiji Guthi (private Guthi). RajGuthi includes chat Guthi (exempted Guthi).
Normally, the Guthi established by the kings and members of the royal family are called RajGuthi. Those Guthis established by the people, and the Guthi taken over by the government due to various reasons are known as RajGuthi. Chhut Guthi is a variety of RajGuthi. The Guthi office such as Guthi Sansthan was established in Nepal for the smooth functioning of the government-sponsored Guthis or RajGuthis. The important aspect of the Guthi system is the land endowment for sustaining Guthis. With the establishment of Guthi Sansthan in 1964, RajGuthis and other Guthis registered in Guthis Sansthan were managed well. This contributed to the continuation of Guthi management. The Guthi System should be regarded as an important intangible cultural heritage. It is very important when talking about Guthis to be clear whether one is talking about the Guthi form of land tenure or the Guthi institution. Guthi was developed as a kind of cooperative, a community organization. This system was very effective in carrying out social, religious, and cultural activities in the past as it set guidelines for service to humanity and society, which cannot be seen from the economic point of view like land and building. The biggest problem it faces is that of encroachment. Lots of Guthi land has been encroached on and already turned into private land. Thus, there is a historical connection but where traditions and ritual functions are supported by Guthis or where the law needs to be designed to provide fairness to agricultural tenants’ efficiency between Guthi and its management. People donated land for various purposes, such as religious piety or to fulfill the obligation one’s social status affords. Moreover, this was done to avoid the state confiscating the land in times of political unrest. To protect Guthi/Trusts land should automatically come under government ownership. In the present context, Guthi lands have been occupied by various persons for their benefit. Hence, they should be controlled and monitored.
The primary objective of this reform was to redistribute land to landless and smallholders. Land rights can be acquired by inheritance, purchase, government land allocation, or tenancy. Foreigners cannot own or rent land in Nepal. Foreigners may acquire land in the name of a business entity registered in Nepal; however, they may not acquire land as personal property. The Constitution of Nepal allows the state to acquire land if such acquisition is in the public interest. Public interest is, however, undefined which raises concerns about the inappropriate transfer of land out of the hands of some to the benefit of others. The government must compensate landholders for any land-taking, including any acquisition during land-reform initiatives set by the law (Art 25 of the Constitution of Nepal – 2072). Strengthening land and property rights is central to ending extreme poverty, reducing hunger, and promoting resilient societies. Clear, secure land rights create incentives that enhance food security, economic growth, and sustainable development. Land use is the founding source of livelihood. Moreover, Land ownership norms require cooperative ownership, recognition of customary ownership or civil conflict over continuing failure of the state to redress injustices in land distribution in countries like Nepal. A land ownership system in which the state or nation owns the land and citizens own only rights to use that land is also common in post-revolutionary economies. In most agrarian countries, where land is so important to the local livelihood, it remains uncommon to see foreigners permitted to own land, although they may lease land.
In conclusion, The need for constitutional recognition and protection of the right to own landed property collectively in different forms has become greater in recent years. This is to enhance access to land for those households and communities, who relied on land use for their livelihood. The use rights may however be quite extensive and amount to relatively full possession and rights to dispose of the land for profit. Hence, the Realization of economic, social, and cultural rights through enhancing equitable access to land is a must to address one of the root causes of the decade-long armed conflict and political and social justice movements in Nepal. The implementation of this Act is continuously ignored while the government authorizes the private sector to be involved in transforming agricultural land into haphazardly made town planning. land reform was gradually becoming a forgotten agenda given the lack of genuine political will towards turning the goal of ‘equitable access to land’ for peasants into a reality.
