The government has extended the deadline for displaced informal settlers staying in temporary holding centres by seven days.

The High Powered Committee for Integrated Development of Bagmati Civilisation (HPCIDBC) issued a fresh notice on Friday, extending the deadline from June 26 to July 3 after residents complained that they had been given too little time to find rental accommodation.

The committee said it had decided to show flexibility after receiving complaints that the original timeframe was insufficient for families to receive government assistance and arrange housing.

The notice also asks displaced families to submit applications by June 29 to receive government relief payments. Applicants must appear at Dasharath Stadium and submit the prescribed form along with their bank account details.

The families were displaced after the government carried out a large-scale eviction drive in April and May, clearing informal settlements built along rivers in the Kathmandu Valley. Authorities said the operation was aimed at removing encroachments from public land and restoring river corridors.

Under the government's relief package, verified beneficiaries will receive a one-time payment of Rs25,000 and a monthly housing allowance of Rs15,000 for up to three months, with the money transferred directly into their bank accounts while longer-term resettlement plans are prepared.

The original June 26 deadline had triggered widespread concern among displaced families, many of whom said finding affordable rental accommodation within a few days was unrealistic. Residents staying in holding centres in Kirtipur, Nagarkot, Banepa and other locations said they had expected a permanent resettlement plan rather than being required to arrange private housing after only a short stay in temporary shelters.

Some families also expressed concern that the three-month rental support would be insufficient to cover housing costs and questioned what would happen once the assistance expired. Others said they had not yet received relief payments and were struggling to find landlords willing to rent to them on short notice.

HPCIDBC Executive Chairperson Anand Singh Bhat previously defended the government's decision, saying holding centres were intended only as temporary accommodation and could not operate indefinitely. He said the government was working to identify genuine landless families and aimed to develop a permanent land distribution plan within three months, while acknowledging that the timeline could be adjusted if necessary.

According to the committee, 1,488 people from 388 households are currently staying in seven holding centres established across Kathmandu, Bhaktapur and Kavrepalanchok following the eviction campaign. The government has also begun digital verification of displaced families staying outside the centres to determine eligibility for relief and future resettlement assistance.