Authorities have begun demolishing structures built by Khadka Land Development Pvt Ltd on land leased from Nepal Scouts.

The move comes after the company, owned by former energy minister and Nepali Congress leader Deepak Khadka, failed to pay rent and comply with court orders.

Minister for Youth and Sports Bablu Gupta led a team to the Lainchaur site on Thursday morning, where bulldozers have started demolishing the buildings.

The Scout initiated the process to take control of structures through a public notice issued last week. The Scouts said the company had not cleared the dues even after the property was sealed. The notice issued on November 6 gave the company seven days to settle the dues, warning that the buildings and materials on the land will be seized if payment is not made within the period.

Khadka Land Development used three ropanis (1526.20 square metres) of land within the Nepal Scouts’ central office premises at Lainchaur on a lease, but was found to have encroached on nearly 12 ropanis (6104.7 square metres).

After the company failed to pay rent on time, the Kathmandu District Administration Office sealed the land and structures on April 18, 2024.

Despite the sealing, the company filed and withdrew cases multiple times instead of settling the dues, causing what the Scouts described as “irreparable damage.”

The land, located next to the Department of Mines and Geology at Lainchaur in ward 29 of Kathmandu Metropolitan City, was leased to the company in 2008 for ten years.

Although the lease expired in 2018, the company refused to vacate the land. It continued to occupy additional space under the pretext of parking, sparking a dispute that reached both the Kathmandu District Court and Patan High Court, which ruled in favour of Nepal Scouts.

The company had constructed buildings and operated a party palace, hotel, and restaurant on the site. Following the court’s decision, the Scouts had issued a 35-day notice on December 14, 2022, requesting the company to vacate the land.