Nepal Scouts has initiated the process to take control of structures built by Khadka Land Development Pvt Ltd and its assets for failing to pay land rent. The company is owned by the Nepali Congress leader Deepak Khadka, who was energy minister in the KP Sharma Oli-led government which was toppled by the Gen Z uprising in September.

In a public notice issued on Thursday, the Scouts said the company had not cleared the dues even after the property was sealed. The notice gives 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.

The notice further states that if the confiscated property does not cover the outstanding amount, recovery will be made from the company’s other assets.

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 issued a 35-day notice on December 14, 2022, requesting the company to vacate the land.

Citing the company’s defiance of the court’s order and repeated correspondence, the Scouts said it was compelled to proceed with sealing and recovery until all outstanding dues are cleared.