He alleged that the landowners had assured him the property lay outside the restricted area. “We were misled,” he said, adding that he would seek legal remedy.

However, landowner Om Bahadur Gurung has urged Minister Gurung to either clear the dues or cancel the agreement. “Either he should continue and pay the rent, or come forward and cancel the contract. We are stuck without rent and without being able to use the land,” he said, adding that only one year’s rent has been paid since the lease agreement.

Minister Gurung had leased 10 ropani of land near the lake for 15 years but has allegedly not paid rent for seven years. The land, located at Simle Lamdanda across Phewa Lake in ward 22 of Pokhara Metropolitan City, was leased in 2018 at an annual rent of Rs 200,000.

According to Om Bahadur, six ropani of the land has formal ownership certificates, while the remaining plots were subdivided and used informally by members of the Gurung family, including descendants of Reshamlal Gurung, Mekh Bahadur Gurung and Birkha Bahadur Gurung.

The issue surfaced after Pokhara Metropolitan City began removing illegal structures around Phewa Lake and identified constructions linked to Gurung within the protected zone.

Mayor Dhanraj Acharya said the structures fall inside the lake’s boundary and must be removed. Acting on a Supreme Court verdict on Phewa Lake conservation, the municipality has begun demarcating the boundary based on the highest recorded water level.

He also said the lease agreement included a clause for rent revision every five years, but only one year’s rent was paid before the project stalled. He added that the landowners had not responded to repeated attempts to contact them.

The leased land, now located opposite a paragliding landing site, was earlier connected to Phewa Lake but became farmland over time due to sedimentation from the Harpan Khola.

Om Bahadur said disputes with neighbours and municipal restrictions halted the project. “First, everything was going well, then disputes escalated and even reached the police,” he said. “After the municipality stopped construction, the land has remained unused.”

Gurung said he lost his investment after the project was stopped and plans to pursue legal action. “I will file a case as a citizen,” he said.

Meanwhile, Pokhara Metropolitan City continues its drive to clear encroachments around Phewa Lake. A notice issued in February required structures within the lake boundary to be removed within 15 days, with demolition costs to be borne by landowners. No action has yet been taken at the leased property.

Mayor Acharya said the municipality is working with land revenue and survey offices to finalise the boundary and verify illegal registrations. He said land within the high-water mark would not be eligible for compensation, while some cases may qualify depending on the findings.

He also said Gurung had commented during a meeting that his land was affected by the demarcation, but authorities later clarified that no registered land in his name has been identified in Kaski District. Gurung said he made the remark without full information and insisted the matter should be resolved through legal channels. “I will not act as a minister in this case, but as a citizen seeking justice,” he said.

The story has been updated for clarity.