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Chapter-1 Preliminary

Chapter-1 Preliminary
1. Short title and commencement :

(1) This Act may be called as the “Plant Protection Act, 2064 (2007)”.
(2) This Act shall commence immediately.
2. Definitions : Unless the subject or the context otherwise requires in this Act,
(a) “Plant” means every kind of plant, whether alive or dead, or any part thereof; and this term also includes stem, branch, scum, layering and budding (Kalami), bark, root, leave, fruit, seed and germ plasma;

(b) “Plant product” means any plant product not yet manufactured for use (including feeds) or any manufactured product that may, by the reason of nature of their processing or otherwise, create a risk for the
introduction, establishment and spread of infectious pests;
(c) “Other article” means any storage, packaging, container, conveyance of any plant or plant product or means of growing plant such as soil, moss, pit and similar other article capable of harboring or spreading
disease or pest;
(d) “Pest” means a rat, bird, micro-plasma, nematode virus, weed, pathogenic agent injurious to plants or plant products; and this term also includes any species or subspecies thereof;
(e) “Controlled pest” means any quarantine pest; and this term includes any controlled pest causing economic loss and damage to any plant product;
(f) “Quarantine pest” means any pest so prescribed by the Ministry upon Notification in the Nepal Gazette as to cause economic loss, as well, to any plant or plant product;
(g) “Beneficial insect” means any insect such as bee, silk and lac insect;
(h) “biological control agent” means any agent such as parasite, counter parasite, predator which may be used to control pests through biological method; and this term includes mushroom, bacteria, fungus and virus;
(i) “Conveyance” means any means such as an aircraft, rail, truck, cart,  horse, donkey and similar other means used to transport plants, plant products or other articles;
(j) “Container” means a container, box, bag or similar other goods (articles) used to transport plants, plant products or other articles;

(k) “Quarantine” means the holding of any plants, plant products or other articles in the specified place or in such place as prescribed by the Inspector for the purpose of observing, testing, investigating, inspecting and examining whether such plants, plant products or other articles are healthy or not and treating them if they are found
not to be healthy;
(l) “Quarantine area” means the area set aside for completing plant quarantine procedures;
(m) “Pest area” means any area with the entry of pests in such manner as to maintain stability there;
(n) “Infection” means the presence or spread of pests in a manner to cause damage to any plants or plant products;
(o) “Inspector” means any person designated by the Ministry pursuant to Section 14;
(p) “Ministry” means the Ministry of Agriculture and Cooperatives of the Government of Nepal;
(q) “Committee” means the plant quarantine committee formed pursuant to Section 3;
(r) “Organization” means the national plant protection organization prescribed by the Government of Nepal pursuant to Section 6;
(s) “Entry permit” means a permit issued pursuant to Section 7; (t) “Phyto-sanitary certificate” means the phyto-sanitary certificate issued pursuant to Section 12;
(u) “Body” means any firm or corporate body registered under the laws in force;
(v) “Pest risk analysis” means the process of determining regulated pests for the purposes of importation of plants or plant products as per  Section 17;
(w) “Endangered area” means any area where ecological factors favour the establishment of pests whose presence in the area results in economic loss to plants or plant products;
(x) “Office” means the office established pursuant to Section 33;
(y) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act

Chapter-2 Provisions relating to Committee and Organization

Chapter-2 Provisions relating to Committee and Organization
3. Establishment of Committee :

(1) There shall be a Plant Quarantine Committee to make advice and suggestions to the Government of Nepal on
policies on the quarantine of plants or plant products.
(2) The Committee referred to in Sub-section (1) shall consist of the following members:
(a) Secretary, Ministry of Agriculture and Cooperatives
Chairperson
(b) Joint Secretary, Ministry of Industries,
Commerce and Supplies (Responsible
for World Trade Organization)
Member
(c) Joint Secretary, Ministry of Forests and
Soil Conservation (Responsible for
environment)
Member
(d) Director General, Department of
Customs
Member
(e) Executive Director, Nepal Agriculture
Research Council
Member
(f) Representative, Federation of Nepal
Chamber of Commerce and Industries
Member
(g) Two experts including one woman
nominated by the Government of Nepal
Member
(h) Three persons including at least one
woman nominated by the Government
of Nepal from amongst the farmers who
have experience in the subject
Member
(i) Chief, National Plants Protection
Organization
Member
(j) Chief, National Plant Quarantine Programme Member Secretary
(3) The tenure of the members referred to in clauses (g) and (h) of
Sub-section (2) shall be Three years.
4. Meetings of Committee : (1) The meetings of the Committee shall be
held at such place, time and date as may be specified by the Chairperson.
(2) The meetings of the Committee shall be presided over by the
Chairperson and by the person selected by the members present at the
meeting from amongst themselves, in the absence of the Chairperson.
(3) The presence of fifty one percent out of the total number of
members of the Committee shall be deemed to constitute a quorum for a
meeting of the Committee.
(4) A majority opinion shall prevail at the meeting of the Committee.
In the event of a tie, the chairperson shall exercise the casting vote.
(5) The decisions of the Committee shall be authenticated by the
member secretary.
(6) Other procedures relating to the meeting of the Committee shall
be as determined by the Committee itself.
5. Functions, duties and powers of Committee : The functions, duties
and powers of the Committee shall be as follows:
(a) To make advice to the Government of Nepal for the formulation of a
national policy on plant quarantine,
(b) To review fees chargeable on the import, export, inspection and
examination/test of plants, plant products or other controlled
substances pursuant to this Act or the Rules framed hereunder,
(c) To make coordination between the private sector and the
governmental bodies involved in the import and export of plants,
plant products or other controlled substances pursuant to this Act or
the Rules framed hereunder,
(d) To prepare a list of controlled pests and alter the list as required;
(e) To maintain a roster of experts involved in plant quarantine existing
in the country,
(f) To approve standards on sanitation of plants or plant products to be
imported or exported,
(g) To perform such other functions as prescribed.
6. Power to designate National Plant Protection Organization : (1)
The Government of Nepal may, by a Notification in the Nepal Gazette,
designate any central level office related with plant protection as the
National Plant Protection Organization.
(2) The functions, duties and powers of the National Plant Protection
Organization, in addition to those set forth in this Act, shall be as follows:
(a) To prepare standards on the sanitation of plants or
plant products to be imported or exported and submit
such standards to the Committee for approval,
(b) To frame and enforce manuals on the examination,
test, inspection and treatment of plants, plant products,
biological control agents, beneficial organisms and
other articles,
(c) To identify endangered areas and protect, or cause to
be protected, plants and plant products in such areas
through quarantine process,
(d) To identify pest free areas and areas of low pest
prevalence and make declaration and surveillance of
such areas,
(e) To prescribe terms and restrictions relating to the
trafficking and use of plants and plant products,
biological control agents and beneficial organisms,
(f) To act as a national coordinator for activities relating
to plants and plant products, biological control agents
and beneficial organisms,
(g) To enforce, or cause to be enforced, approved
standards on the sanitation of plants or plant products
to be imported or exported,
(h) To make coordination with phyto-sanitary bodies of
other countries and make understandings on the
recognition of each other’s permits and phyto-sanitary
certificates,
(i) To perform such other functions as prescribed

Chapter-3 Provisions relating to entry permit, sanitary certification and re-export certificate

Chapter-3 Provisions relating to entry permit, sanitary certification and re-export certificate
7. Entry permit to be obtained :

(1) A person or body wishing to import plants, plant products, biological control agents, beneficial organisms or
means of growing plants such as soil, moss and pit shall obtain the entry permit pursuant to this Act.
(2) The terms and restrictions on the importation of plants, plant products, biological control agents, beneficial organisms or means of growing plants such as soil, moss and pit as referred to in Sub-section (1)
shall be as prescribed by the Ministry by Notification in the Nepal Gazette.
(3) Notwithstanding anything contained in Sub-section (2), if any person brings any plants, plant products, biological control agents or beneficial organisms for his or her personal or research purpose, the Office
may issue the entry permit to him or her to bring such plants or plant products into Nepal in accordance with the procedures set forth in this Act, by collecting fees as prescribed.

8. Application for entry permit :

(1) A person or body interested to import plants, plant products, biological control agents, beneficial organisms or
means of growing plants such as soil, moss and pit shall make an  application in such form, to such authority and accompanied by such documents and fees as may be prescribed.
(2) If, in examining the application made pursuant to Sub-section (1), it appears appropriate to issue the entry permit to import such plants, plant products, biological control agents, beneficial organisms or means of
growing plants such as soil, moss and pit, the prescribed authority shall issue the entry permit in the prescribed form to the applicant.
(3) If it does not appear appropriate to issue the entry permit pursuant to Sub-section (2), information thereof shall be given to the concerned person within Seven days.
9. Term of entry permit : The term of the entry permit shall be Three months.
10. Renewal of entry permit : (1) A person or body interested to get the entry permit renewed shall make an application to the prescribed authority for the renewal of entry permit in advance of Seven days prior to the
expiration of the entry permit.
(2) If an application is made pursuant to Sub-section (1), the prescribed authority may renew such entry permit for a term not exceeding Three months, by collecting the fees as prescribed.
(3) The entry permit shall ipso facto be invalid upon the expiration of the term of such permit.
11. Entry permit to be obtained : (1) The entry permit shall be obtained prior to importing into Nepal any plants, plant products, biological control agents, beneficial organisms or means of growing plants such as soil, moss
and pit brought at the entry point for import.
(2) The procedures for obtaining the entry permit pursuant to Sub- section (1) shall be as prescribed.
12. Phyto-sanitary certificate for export or re-export : (1) A person or body wishing to export plants, plant products, biological control agents or beneficial organisms may obtain the phyto-sanitary certificate.
(2) A person or body wishing to re-export to another country any plants, plant products, biological control agents or beneficial organisms imported into Nepal may obtain the re-export phyto-sanitary certificate.
(3) A person or body wishing to obtain the phyto-sanitary certificate pursuant to Sub-section (1) or (2) shall make an application in such form, to such authority and accompanied by such fees as may be prescribed.
(4) If, in examining the application made pursuant to Sub-section (1) or (2), it appears appropriate to issue the phyto-sanitary certificate, the prescribed authority shall issue the phyto-sanitary certificate or re-export
phyto-sanitary certificate in the prescribed form to the applicant.
13. Permit to be obtained for carriage of consignments : (1) If any person or body intends to carry to another country via the route of Nepal any consignments of plants and plant products or other articles in -transit,
such person or body shall make an application to the Office in such form and accompanied by such fees as prescribed.
(2) If an application is made pursuant to Sub-section (1), the Office shall examine the documents accompanied with the application and such consignments.
(3) If, in making examination pursuant to Sub-section (2), such consignments appears as follows, the Office shall permit to carry such consignments to another country via the route of Nepal:
(a) where such consignments are so packed that any pests cannot come out or spread;
(b) where such consignments and the documents pertaining thereto conform to the Rules of the country
of destination relating to the import of plants or plant products;
(c) where such consignments and phyto-sanitary certificate conform to each other;
(d) where the carriage of consignments do not have any kind of effect in Nepal.

Chapter-4 Provisions relating to inspection, test and treatment

Chapter-4 Provisions relating to inspection, test and treatment
14. Power to designate inspectors :

For the purpose of making inspection of plants, plant products, biological control agents, beneficial organisms or
other articles, the Ministry may designate any employee who possess the qualifications as prescribed, as inspectors.

15. Functions, duties and powers of inspectors :

(1) The functions, duties and powers of the inspectors shall be as follows:
(a) To examine and test whether any plants, plant products, biological control agents, beneficial
organisms or other articles which have been imported or are in inspect areas, stored or in transit conform to
the approved standards,
(b) To inspect or test whether any plants, plant products, biological control agents, beneficial organisms or other
articles which are intended to be imported or exported are infected by pests,
(c) To enter, at any time, any area or store or other place and examine such area or store and search the same, as
prescribed, if so required,
(d) To stop, at any place, a container and conveyance containing any plants, plant products, biological
control agents, beneficial organisms or other articles and search such container or conveyance;
(e) If, in carrying out examination or test pursuant to Clause (a) or inspection pursuant to Clause (b) or
search pursuant to Clauses (c) and (d), such plants, plant products, biological control agents, beneficial
organisms or other articles are found to be infected, to treat them or issue order to the concerned person to
treat the same,
(f) If, in treating or causing to be treated any plants, plant products, biological control agents, beneficial
organisms or other articles do not become healthy and such plants, plant products, biological control agents,
beneficial organisms or other articles need to be taken into their control or destroyed as prescribed or sent
back to the concerned country, to give information to the Organization immediately and do as per the order
as received,
(g) To prohibit the sale, distribution or use of any infected plants, plant products, biological control agents,
beneficial organisms or other articles, (h) To perform such other functions as prescribed.
(2) Other procedures in relation to the inspection, test and treatment referred to in Sub-section (1) shall be as prescribed.
16. Inspection, test and treatment fees : The fees chargeable for inspection, test or examination to be carried out by the inspectors pursuant to this Chapter shall be as prescribed by the Ministry by a Notification in the
Nepal Gazette

Chapter-5 Provisions relating to control of pests

Chapter-5 Provisions relating to control of pests
17. Pest risk analysis :

(1) The Organization shall make pest risk analysis and determine regulated pests.
(2) The Organization shall make recommendation to the Ministry for  the publication in the Nepal Gazette of a notice of controlled pests as determined pursuant to Sub-section (1), and the Ministry shall, on receipt
thereof, publish such notice in the Nepal Gazette.
18. Notice of quarantine pests : Any person may, if he or she knows about the prevalence or spread of quarantine pests in any area, give information thereof to the nearby inspector.
19. Power to declare quarantine pests affected area :

(1) If there is a spread of, or a possibility of a spread of, quarantine pests in any area of Nepal, the Organization may make recommendation to the Ministry to declare such area as the quarantine pests affected area.
(2) If a recommendation is made pursuant to Sub-section (1), the Ministry may, also having regard to the situation mentioned therein, declare such area as the quarantine pests affected area.
(3) In declaring the quarantine pests affected area pursuant to Sub- section (2), the Ministry shall mention, inter alia, the period and area of application of, reason for, such area and activities prohibited therein and
terms of quarantine.
20. Control of pests in quarantine pests affected area : (1) The Organization may pursue any or all of the following measures in order to control quarantine pests in the quarantine pests affected area declared  pursuant to Section 19.
(a) To make treatment so as to control such pests,
(b) To destroy plants, plant products, biological control agents, beneficial organisms or other articles
remaining in such area,
(c) To prevent the taking of plants, plant products, biological control agents or other articles from such
area to elsewhere,
(d) To prevent the plantation of plants or plant products in such area,
(e) To pursue such other measures as the Organization may consider appropriate.
(2) The Organization may, if it considers necessary, order the owners of the plants remaining in any quarantine pests affected area referred to in Section 19 or any area near such area to carry out any act set forth in Sub-section (1).
(3) The Organization shall write to the inspector of the concerned area to ensure compliance with the order issued pursuant to Sub-section (2).
(4) The inspector shall, on receipt of the order referred to in Sub- section (3), may enter the plants or plant products examination area or the land where such plants or plant products or biological control agents,
beneficial organisms or other articles are situated and do, or cause to be done, any act contained in the order issued pursuant to Sub-section (2).
(5) If any healthy plants, plant products, biological control agents or beneficial organisms or other articles are destroyed despite the exercise of due care in the course of carrying out any act or action pursuant to this
Section in order to control pests, the Organization or Government of Nepal shall not be bound to bear or pay any liability or compensation of any kind.

21. To cancel declaration of quarantine pests affected area :

(1) The Organization shall monitor from time to time as to whether quarantine pests are controlled in any quarantine pests affected area declared pursuant to Section 19.
(2) If, in monitoring pursuant to Sub-section (1), quarantine pests are found controlled, the Ministry may, on recommendation of the Organization cancel the declaration referred to in Section 19 prior to the time set forth in such declaration.

Chapter-6 Offense and Penalties

Chapter-6 Offense and Penalties
22. Offense : If any person commits any of the following acts, such person
shall be deemed to have committed an offense under this Act:
(a) To import any plants, plant products, biological control agents,
beneficial organisms or soil without obtaining the entry permit
except as otherwise mentioned in this Act,
(b) To import any plants or plant products, biological control agents,
beneficial organisms or soil without the phyto-sanitary certificate,
(c) To violate any order issued or any term prescribed pursuant to this
Act or the Rules framed under this Act,
(d) To bring or import any infected plants or plant products,
(e) To muddle up, whether knowingly or recklessly, any infected plants,
plant products or other articles with any healthy plants, plant
products or other articles,
(f) To sell and distribute any infected plants or plant products,
(g) To destroy infected plants, plant products or other articles by an
importer without fulfilling the prescribed procedures,
(h) To remove infected plants, plant products or other articles from the
quarantine site without approval of the inspector or the office in –
charge,
(i) To import or bring into any plants or plant products, biological
control agents, beneficial organisms or soil form any entry point
other than the prescribed entry point,
(j) To obstruct or hinder with the making of search or inspection or
collection of samples in accordance with this Act and the Rules
framed under this Act,
(k) To do any act to obstruct the exercise by the inspector of the powers
conferred by this Act.
23. Penalties : Any person who commits the offenses set forth in various
Clauses of Section 22 shall be liable to the following penalties:
(a) In the case of the offenses referred to in Clauses (a) and (b), a fine of
Five Hundred Rupees to Five Thousand Rupees taking into account
of the gravity of offenses.
(b) In the case of the offenses referred to in Clauses (c), (i), (j) or (k), a
fine of Five Thousand Rupees to Ten Thousand Rupees taking into
account of the gravity of offenses.
(c) In the case of the offenses referred to in Clauses (d), (e), (f), (g) or
(h), a fine of Ten Thousand Rupees to Fifty Thousand Rupees taking
into account of the gravity of offenses.
(d) The office in-charge may punish any person who violates any order
issued by the inspector or the office in-charge in the course of
inspection, test or treatment, also in consideration of the effects to be
caused therefrom, with a fine of Five Thousand Rupees to Twenty-
Five Thousand Rupees.
24. To be seized and destroyed : If any plants or plant products, biological
control agents, beneficial organisms or other articles to be imported or
transported pursuant to this Act are found infected in the course of
inspection or examination, those which can be treated shall be released after
treatment, and those which are found still to be infected despite treatment
shall be seized and destroyed.
25. Expenses to be borne : The concerned importer or exporter of any plants,
plant products, biological control agents, beneficial organisms or other
articles or person related with such goods shall bear all expenses incurred in
the treatment or destroy of such goods or sending them back to the
concerned country in accordance with this Act or the Rules framed
hereunder.

Chapter-7 Miscellaneous

Chapter-7 Miscellaneous
26. Power to order for deposit :

(1) If there is a reasonable ground to believe that the owner or importer of any plants, plant products, biological control agents or beneficial organisms may leave such plants, plant products, biological control agents or beneficial organisms, the Office may order such owner or importer to deposit the amount as prescribed with the Office.
(2) If an order is issued by the Office pursuant to Sub-section (1), such owner or importer shall deposit such amount with the Office, and the Office shall give a receipt thereof to the concerned owner or importer.
(3) The Office shall credit the amount received pursuant to Sub- section (2) to its deposit account.
(4) The Office shall refund the amount credited to the deposit account pursuant to Sub-section (3) to the owner of the plants, plant products, biological control agents or beneficial organisms held in the
Office pursuant to Sub-section (1) if such goods are not found infected or if the owner or importer thereof removes them or after treating or destroying them under this Act in the case of infection.
(5) Notwithstanding anything contained in Sub-section (4), if the Office itself treats or destroys such plants, plant products, biological control agents or beneficial organisms, only the amount remaining after deducting
the expenses incurred in such treatment or destroy shall be refunded.

27. Investigation, inquiry and filing of cases :

(1) The inspector shall carry out investigation of and inquiry into cases relating to the offenses under this
Act.
(2) The procedures to be followed in carrying out investigation and inquiry pursuant to Sub-section (1) shall be as prescribed.
(3) After the completion of investigation and inquiry pursuant to Sub-section (1), such inspector shall seek opinion of the government attorney and file cases with the case trying authority.
(4) Any investigation and inquiry as referred to in Sub-section (1) shall be completed within Twenty Five days after the commencement of such investigation and inquiry.
28. Adjudicating authority : The prescribed authority shall proceed and dispose of the cases relating to the offenses under this Act.
29. Government to be the Plaintiff : The Government shall be the plaintiff in the cases relating to the offenses under this Act.
30. Appeal : (1) A person who is not satisfied with an order issued by the office in-charge or the inspector pursuant to this Act may make an appeal to the in-charge of the office referred to in Section 6 within Thirty Five days
after the date of receipt of such order.
(2) A person who is not satisfied with a decision made by the Adjudicating Authority pursuant to this Act may make an appeal to the concerned Court of Appeal within Thirty Five days after the date of knowledge of that decision.

31. Saving of acts done in good faith : No governmental employee shall be personally liable in relation to any act done in good faith under this Act. Provided that, nothing contained in this Section shall be deemed to affect any consequences resulting from any act done recklessly.

32. Customs related act : Notwithstanding anything contained in the law relating to customs, the concerned customs office shall initiate customs related procedures only when the plant quarantine check post or the office
gives permission for the entry into Nepal of any plants, plant products, biological control agents, beneficial organisms, other articles and means of growing plants such as soil, moss and pit imported in accordance with this
Act.

33. Power to establish office : The Government of Nepal may, for the purposes of this Act, establish plant quarantine check posts or quarantine offices, as required, by a Notification in the Nepal Gazette.

34. To render assistance : In the course of discharging their duties pursuant to this Act, the inspector and office in-charge may request the customs, airport, air services, post office, police and local administration for
necessary assistance; and on such request, the concerned bodies and officials shall render necessary assistance.

35. Powers to frame Rules : The Government of Nepal may frame necessary Rules for the attainment of the objectives of this Act.

36. Repeal and saving :

(1) The Plant Protection Act, 2029 (1973) is, hereby, repealed.
(2) All acts done and actions taken pursuant to the Plant Protection Act, 2029 (1973) shall be deemed to have been done and taken under this Act.
(3) The cases which have been filed with the plant protection officer pursuant to the Plant Protection Act, 2029 (1973) and are being tried or yet to be settled and petitions pertaining thereto shall be transferred to the
Adjudicating Authority under this Act after the commencement of this Act, and such Authority shall try and settle such cases.

Pasture Land Nationalization Act, 2031 (1974)

Pasture Land Nationalization Act, 2031 (1974)
Date of Authentication and Publication
2031.6.20 (6 Oct. 1974)
Amendment:
Republic Strengthening and Some Nepal
Laws Amendment Act, 2066(2010) 1 2066.10.7(21 Jan. 2010)
Act Number 12 of the year 2031 (1974)
……………………… 2
An Act Made to Nationalize the Pasture Land
Preamble : Whereas, it is expedient to nationalize the pasture land in
order to maintain the convenience and economic interest of the general
public;
Now, therefore, His Majesty King Birendra Bir Bikram Shah Dev
has, on the advice and with the consent of the National Panchayat, made
this Act.
1. Short title, extension and commencement : (1) This Act may
be called as “Pasture Land Nationalization Act, 2031 (1974).”
(2) It shall extend to the whole of……….. 3 Nepal.
(3) It shall come into force in such district and on such date
as may be specified by the Government of Nepal by publishing a
notice in the Nepal Gazette. 4
2. Definitions : Unless the subject or context otherwise requires, in this Act:
(a) “Pasture land” means any land that has been used only for animal grazing by any name including pasture, pasture
Chowk (junction), whether registered with any office or not.
(b) “Registration holder’ means a person or persons who has or have registered a pasture land in his or her name or
collectively subject to the payment of land revenue or pasturing fee to the Government of Nepal pursuant to the
prevailing Nepal law and who has or have the right in the pasture land by virtue of that registration.
(c) “Land Revenue Office” means the Land Revenue Office in a place where such office is situated, and the Land
Administration Office where such office is not situated.
3. Nationalization of pasture land : After the date of commencement of this Act, all pasture lands situated
in………… 5 .Nepal shall be nationalized and the ownership of such lands shall devolve on the Government of Nepal, and the right relating to the ownership of landholders in such pasture lands existing prior to the commencement of this Act shall ipso facto lapse.
Provided that,
(a) Notwithstanding that the land has been used only for pasturing for personal use, the landholder shall be entitled to hold the land if it is within the ceiling specified by the prevailing Nepal law.
(b) The Government of Nepal may grant exemption pursuant to the prevailing Act, law, for the following purposes even after the commencement of this Act:
(a) Fruits farming,
(b) Animal husbandry,
(c) Herbs farming,
(d) Tea farming.
4. Compensation to be provided :

(1) The Government of Nepal shall, on recommendation of the committee formed as per the
Rules, determine reasonable amount of compensation to be provided to the landholders of the pasture land nationalized pursuant to Section 3.
Such a committee shall consist of, inter alia, the president of the concerned District Development Committee 6 , Chairperson 7 of the local Village Development Committee 8 or their representatives.
(2) The Land Revenue Office shall affix a notice for the information to the concerned landholders, and calling upon them to show up to receive the amount of compensation as referred to in Sub-section (2).
(3) A landholder shall make an application, accompanied by the evidence of his or her title and possession, to the concerned Land Revenue Office, to obtain compensation within one year after
the date of affixation of notice as referred to in Sub-section (2).
Provided that, if any person fails to make application even within One year after the date of affixation of notice, the person shall not be entitled subsequently to make any claim on the  compensation.
(4) The Land Revenue Office shall make necessary examination of the applications made pursuant to Sub-section (3)
and give compensation to the landholders on pro rata of the land revenue/tariff.
Provided that, if there arises any question on the right to compensation or the figure of compensation, the Land Revenue Office shall provide compensation as decided by the court.
5. Arrangement of pasture land : (1) The Government of Nepal shall cause the Land revenue Office to maintain separate inventory of the pasture land nationalized pursuant to Section 3 and assign the responsibility to the local Village Development Committee 9 for the protection of such land and pasturing.
Provided that, nothing contained in this Sub-section shall be deemed to prevent the Government of Nepal from providing the pasture land in which more than one Village Development Committee has right of way to more than one Village Development Committee.
(2) The local Village Development Committee 11 shall protect and reform the pasture land of which responsibility has been assigned to it pursuant to Sub-section (1), and not use, or cause to be used, the land for any other purpose except pasturing.
6. Land to be allowed for grazing upon collection of grazing fee : (1) The Village Development Committee shall allow the pasture land under its jurisdiction for the grazing by all animals including those animals who have been grazing there since ago by collecting the annual grazing fee at the rate of a maximum of Three Rupees for each big animal including a yak, cow, buffalo, horse and mule and a maximum of One Rupee for each small animal including a he-goat, she-goat, ship and mountain goat.
(2) The grazing fee recovered pursuant to Sub-section (1) shall be credited to the fund of the Village Development
Committee.
7. Power to give direction to Village Development Committee 12 : If the Government of Nepal so considers necessary,
it may give necessary direction to the Village Development Committee
13 for the protection, reform of the pasture land and pasturing, and it shall be the duty of the Village Development
Committee 14 to abide by such direction.
8. Power to frame Rules : The Government of Nepal may frame Rules to implement the objectives of this Act.

33. Conferring the Degree and Certificate and Fixation of Equivalency and Standards

33. Conferring the Degree and Certificate and Fixation of Equivalency and Standards:

(1) The University may confer certificate as may be prescribed to the students, trainees or researchers having
obtained higher education as prescribed and may confer honorary degrees to the persons carrying out research oriented activities and appreciable work in the educational and academic field.
(2) The University may recognize the educational degrees of any native or foreign University or of educational institution, and may fix the equivalency and standard of various degrees of the University with those degrees.

36. Delegation of Power

36. Delegation of Power :

(1) The Senate may delegate any or all of the powers conferred on it under this Act or the Rules framed hereunder to the Executive Council, Research Council, Campus, Faculty, any Official, Academic Council, Education Council or any Committee, Sub-committee or working group, constituted as per this Act.
(2) Executive Council, may delegate any of the powers conferred on it under this Act or the Rules framed hereunder, to any official or any committee of the University.

38A. Approval to be obtained

38A. Approval to be obtained : Notwithstanding anything contained in this Act, approval of the Government of Nepal shall be taken while framing Rules or performing any act in case such matter causes additional financial burden to the Government of Nepal.

Chapter-1 Preliminary

Chapter-1 Preliminary
1. Short Title, Extent and Commencement :

(1) This Act may be called the “Public Roads Act, 2031 (1974)”.
(2) It shall come into force throughout Nepal.
(3) Chapter-4 of this Act shall come into force in such area or region on such date as specified by the Government of Nepal by a Notification in the Nepal Gazette, and the other Sections shall come into force immediately.
2. Definitions : Unless the subject or context otherwise requires, in this Act:
(a) “Public roads” mean roads that are not subject to personal possession by any person, and this term also includes all kinds of bridges, causeways, culverts, 2 bi-cycle ways and footpaths.
(b) “Road border” means a public road and the area of land as prescribed on the right and left hand sides of the central line of such a road, pursuant to Section 3.
(c) “Land” means any land, and this term also includes a shed, house, building, tree etc. situated in and anything permanently fixed to such a land.
(d) “Local Authority” means the authority designated by the Government of Nepal, and the Chief District Officer where no authority is so designated.
(e) “Department of Roads’ means the Department of Roads of the Government of Nepal.
(f) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act.

Chapter-2 Classification of Public Roads, Road Border and Acquisition of Land

Chapter-2 Classification of Public Roads, Road Border and Acquisition of Land
3. Classification of Public Roads and Road Border Thereof : The Government of Nepal shall, by a notification in the Nepal Gazette, classify the public roads as follows and specify the road border not exceeding Thirty One meters on both right and left hand sides from the central line of such roads. Provided that even in relation to the whole length of the same kind of road, the Government of Nepal may, owing to the topography and habitation, 3 specify the required border also setting out the four boundaries to limit speed or for the safety of a bridge or the river banks around the bridge:
(a) High ways,
(b) Feeder roads,
(c) District roads,
(d) Urban roads.
4 3A. Power to prohibit the making of building etc. within the prescribed distance : (1) The Government of Nepal may prohibit any person from building any kind of permanent structure or building within such distance specified by the Government of Nepal by a Notification in the Nepal Gazette, as not exceeding Six meters from the road border where it has been specified pursuant to Section 3 and from the side of the public road where the road border has not been specified.
5 Provided that, the provisions of prevailing laws shall be applicable in the areas where Town Development Plan is being implemented.

(2) If any person constructs any kind of permanent structure or building within the distance prohibited pursuant to Sub-section (1), such a structure or building may be demolished by the order of the Department of
Roads. The Department of Roads may recover also the expenses incurred in the demolition of such a structure or building from the concerned person.
4. Power To Acquire Land for Public Roads and Road Border : If it is required to acquire any land for the development, expansion or improvement of a public road or the road border, the Government of Nepal
may temporarily acquire the land in accordance with the laws in force in relation to the acquisition of land.
5. …………… 6
6. …………… 7
7. …………… 8
8. …………… 9
9. …………… 10
10. …………… 11
11. …………… 12
12. …………… 13
13. ……………

Chapter-3 Monitoring, Maintenance of Public Roads and Other Provisions

Chapter-3 Monitoring, Maintenance of Public Roads and Other Provisions
14. Power to Requisition Other Land in Developing, Expanding or Improving Roads :

(1) The Department of Roads may temporarily requisition any land for the following purpose until the development,
expansion or improvement of a public road is completed:
(a) To hold (store) the construction materials and equipment required for the development, expansion or
improvement of such a road and to build a house, and/or shed for the persons who monitor or control the
acts relating to such development, expansion or improvement,
(b) To build a separate road of temporary kind as required to continue the traffic or movement in such a road until
the development, expansion or improvement of such a road is completed or to transport the materials or
equipment related thereto until the development is completed.
(2) The following house, land shall not be requisitioned except in a special situation for the purpose set forth in Sub-section (1):
(a) A house, shed or structure being used by a person for habitation,
(b) A land being used for a shrine, school, hospital, public rest house (Dharmashala) or orphanage.
(3) A land requisitioned pursuant to Sub-section (1) shall, after the completion of the purpose for which it has been requisitioned, be returned to the concerned landowner or his or her heir in the same condition as it
was when requisitioned, to the extent possible.
15. Compensation of Land To Be Requisitioned and Fixation of Compensation : No compensation shall be provided against the requisition of any land pursuant to Section 14 except in the following
circumstance:
(a) Where any land along with a house, shed or structure has been requisitioned, the loss sustained by the owner of such a house, shed or structure because of being unable to use the same,
(b) Where any land has been requisitioned for a period beyond the time for cultivation of crops, loss sustained by the
concerned landowner because of being unable to cultivate the crops,
(c) The amount that had to be borne by the person entitled to have any requisitioned land returned to restore the land into  the situation when requisitioned as a result of building any temporary road or holding construction materials in the land.
(2) The amount of compensation as referred to in Sub-section (1) shall be determined as follows:
(a) As per the agreement, if any, concluded between the Department of Roads and the concerned landowner,
(b) If agreement cannot be made pursuant to Clause (a), compensation shall be fixed by arbitration, and there shall be following arbitrators for that purpose:
(1) One member of the District Development Committee or Village Development Committee as designated by
the District Development Committee, (2) Chief District Officer, and
(3) Chief of Land Administration Office or Land Revenue Office.
16. Plantation of Trees on Both Sides of Road and Taking Care Thereof : (1) The Department of Roads shall plant trees on the right and left hand sides of a public road, as per necessity.
(2) It shall be the duty of the concerned Village Development Committee or Municipality to take care of and protect the trees planted pursuant to Sub-section (1).
(3) It shall be the responsibility of the Department of Roads to trim the trees planted pursuant to Sub-section (1) and remove such trees if they obstruct the movement or traffic.
(4) 15 Notwithstanding anything contained in Sub-sections (1), (2) and (3), the Department of Roads may get the acts mentioned in these Sub- sections carried out by any other person or organization as prescribed.
16 16A. Determination of Ceiling of Weight : The Government of Nepal may, by a Notification in the Nepal Gazette, specify the ceiling of load that a public road can bear and prohibit the plying of a motor vehicle with a load
exceeding the ceiling so specified.
17. Soil, Stone Or Sand May Be Taken From Land In Vicinity : (1) If it is necessary to take soil, stone or sand from any land in vicinity for the development, maintenance of a public road, the soil, stone or sand in
required quantity may be taken by the order of the Department of Roads. If, in taking soil, stone or sand from such a land, any damage is caused to any crops, plants, trees or other things in that land, compensation shall be paid
for such damage. If in taking soil, stone or sand from such a land, any hole is made, compensation in the sum required to fill up the hole has to be paid.
(2) Notwithstanding anything contained in Sub-section (1), if it is required to take soil, stone or sand from a surrounding land near any house, soil, stone or sand shall not be taken from such a land without obtaining
approval from the concerned house owner.
18. Power To Remove Goods Causing Obstruction To Movement On Public Roads : (1) If the movement on a public road is obstructed in any manner as a result of any goods left, placed or thrown on the public road,
the Department of Roads may issue an order to the concerned person to remove such goods within a reasonable period of time as specified in the order.
(2) The Department of Roads may set aside on the road any goods that have not been removed within the period of order issued pursuant to  Sub-section (1) or of which owner has not been identified or take such
goods elsewhere to be held in its possession.
(3) Notwithstanding anything contained in Sub-section (1), if any goods left, placed or thrown on a public road cause obstruction to the whole movement of such a road, the Department of Roads shall have the power to
immediately remove such goods from the road.
(4) If it is held that anything or arm or branch of a door or tree or wire, other than the goods as referred to in Sub-section (1), that is so held, installed or made with a house or wall on either side of a public road as to
project towards the road causes obstruction to the movement on the road, the Department of Roads may issue an order to the concerned person to remove such obstruction or arrange the goods in a manner not to cause
obstruction within a reasonable period of time as specified in the order, and may also specify in the order the form or structure in which the concerned goods or door have to be held, made or installed and the height that has to
be maintained by cutting the trees or branches thereof.
Provided that, if it is required to remove any goods or door already made or held prior to the commencement of this Act, the Department of Roads shall provide compensation for the same and bear the expenses to be
incurred in some alteration therein if such alteration is to be made.
(6) In the event of failure to do act as mentioned in the order within the time limit specified pursuant to Sub-section (4) or even within the time
limit extended pursuant to Sub-section (5), the Department of Roads may
do, or cause to be done, the act set forth in such an order by deputing its

own employee or other person. 17 In such a case, the concerned person shall
not be entitled to claim any compensation or expenses pursuant to the
proviso to Sub-section (4).
18 19. Prohibition On Doing Any Act On Public Roads Or Road Border
Without Obtaining Permission: (1) No person shall build an access
road joined to a public road or dig or demolish a hole or ditch on a public
road or within the road border or install or place barrier, peg or fort on the
public road or build a house or shed thereon or cultivate a land within the
road border or do any other similar act without obtaining the permission of
the Department of Roads.
(2) If any person does any act as set forth in Sub-section (1) without
obtaining the permission of the Department of Roads, the Department of
Roads shall also institute an action, if required to be instituted pursuant to
the other Sections of this Act against that person and may issue an order to
the concerned person to close down the access road built, fill up the hole or
ditch dug or remove the barrier, fort or peg made or demolish the house or
shed built or barren the land cultivated without obtaining the permission
within a reasonable period of time as specified in the order.
(3) If the concerned person fails to observe the order issued pursuant
to Sub-section (2), the Department of Roads may close down the access
road built, fill up the hole or ditch dug or remove the barrier, fort or peg
made or demolish the house or shed built or barren the land cultivated by
that person, and recover the expenses incurred therein from the concerned
person.
20. Power To Cause Deposit Furnished Or Collect Fees : (1) If any
person is required to dig or demolish a public road or road border for any
work, the person has to obtain permission of the Department of Roads, and
if a request is made for such a permission, the Department of Roads shall
make necessary inquiry into the matter and may give permission by taking
a deposit of the expenses that may be incurred in maintaining and restoring
into its original form of the public road or road border to be so dug or
demolished.
(2) In giving permission to dig a public road or road border pursuant
to Sub-section (1), the Department of Roads may specify the manner to be
followed in so digging of the public road or road border and other terms to
be observed until the purpose for which it is to be dug is served, and if the
Department of Roads thinks it necessary to have a bond executed by the
person asking for permission to observe such terms, it may also have such a
bond executed.
21. Power Of Department of Roads To Recover Expenses : (1) The
Department of Roads may recover the amount of expenses incurred in
setting aside the goods left or held on the road pursuant to Sub-section (2)
of Section 18 or doing any work pursuant to Sub-section (6) of that Section
from the concerned person.
(2) The Department of Roads shall issue a time limit of Thirty Five
days in the name of the concerned person to pay the amount to be recovered
pursuant to Sub-section (1), and shall institute action to make recovery as
government dues in the event of failure to pay the amount even within the
said time limit or to make a request for additional time limit.
(3) If the Department of Roads has taken into its control any goods
left or held in a manner to obstruct the movement on a public road, it may
hold up such goods until the expenses incurred in setting such goods aside
or taking them elsewhere are recovered; and if such expenses cannot be
recovered until One year or the owner of such goods cannot be found out,
such goods shall devolve on the Government of Nepal.

Chapter-4 Provisions Relating to Development Tax

Chapter-4 Provisions Relating to Development Tax
22. Power to Recover Development Tax : The Government of Nepal may once levy the development tax on lands on either side of a road developed/built after the commencement of this Act and recover such tax.
23. Land Subjected to Development Tax and Division of Portion Thereof :
19 (1) The development tax shall be levied on the land that is within Two Hundred Fifty meters on either side from the road border, if any specified, and from the road edge where the road border has not been
specified.
Provided that, no development tax shall be charged on the land falling within the prescribed distance in which construction of a permanent structure or building is prohibited pursuant to Section 3A.
(2) For the purpose of the development tax, the land as referred to in Sub-section (1) shall be divided into 125-meter portions and classified as follows:
(a) Land of up to 125 meters as portion “A”,
(b) Land of 125 meters to 250 meters as portion “B”.
24. Determination of Development Tax :

(1) The development tax shall be collected in an amount to be set by the following percent of the price of a
land in a region or area set for the payment of compensation in acquiring the land pursuant to Section 5:
(a) 20 per cent for a land of portion “a”,
(b) 10 per cent for a land of portion “b”.
Illustration: In acquiring a land in a region or area, compensation has been paid by setting the price of the land at the rate of Rs. 5,000.00 per Ropani, and out of a total of One and half Ropani of the land of a person
subjected to tax in such a region or area, half Ropani land falls within portion “a” and One Ropani within portion “b”, the amount of development tax required to be paid by that person pursuant to this Section shall be as
follows:
Rs. 500.00 by 20 per cent of half Ropani falling within portion “a”
Rs. 500.00 by 10 per cent of One Ropani falling within portion “b” Total Rs. 1,000.00
(2) Notwithstanding anything contained in Sub-section (1), if the Government of Nepal considers necessary to reduce the rate of the development tax leviable on a land or make exemption from the
development tax levilable on the land, in consideration of the situation of  the land or for any other reasons, it may, by a Notification in the Nepal Gazette, reduce the rate of the development tax or make exemption from
the development tax. The Government of Nepal shall also take into account of the recommendation of the compensation fixation committee in relation to the reduction of the rate of the development tax or make exemption from the development tax.
25. Period For Payment Of Development Tax and Office: (1) The development tax required to be paid pursuant to this Act has to be paid to the prescribed office in the installments as prescribed.
Provided that, if a person wishes to pay in lump sum  the whole amount of the development tax required to be paid by the person, this Section shall not be deemed to bar for making of such payment.
(2) The time limit for the payment of the development tax and other relevant procedures shall be as prescribed.
26. Development Tax To Be Recovered as Due Land Revenue : (1) If a person does not pay the development tax within the time limit as referred to in Section 25, action shall be taken and the recovery thereof shall be made
as if it were due land revenue in accordance with the Nepal laws in force.
(2) Where the concerned land has to be auctioned while taking action for the recovery of the development tax that is due pursuant to Sub- section (1), notwithstanding anything contained in the Nepal laws in force, auction sale of the land subjected to such development tax shall be made only after obtaining the approval of the Government of Nepal Ministry of Works and Transportation.

Chapter-5 Miscellaneous

Chapter-5 Miscellaneous
27. 20 Authority For Determination of Compensation and Petition Against Determination :

(1) The amount of compensation to be provided pursuant to Sub-section (4) of Section 17 or Sub-section (4) of Section 18  shall be as determined by the Department of Roads in presence of the concerned Ward Member of the local Village Development Committee or Municipality.
(2) A person who is not satisfied within the compensation determined pursuant to Sub-section (1) may make a petition to the Government of Nepal within Thirty Five days after the date of receipt of the notice of compensation.
28. 21 Not To Bar Requisition Of Land By Reason Of Petition Being Made : The requisition of a land for the purpose of this Act shall not be barred only for a reason that a petition has been filed in relation to compensation pursuant to Sub-section (2) of Section 27.
29. Notice To Be Given When Road Is To Be Dug By Government Office : If any office of the Government of Nepal has to dig a public road or road border for any work, it has to dig by obtaining approval of the
Department of Roads, and such an office has also to observe the method (norms) or terms, if any, prescribed by the Department of Roads in relation to so digging the road or road border.
30. Penalty : (1)
22 ………..A person who causes obstructions or objection while posting any notice while requisitioning
23 ……………any land pursuant to Section 14 or posting any notice pursuant to this Act, he/she
shall be punished with an imprisonment for a term not exceeding Three months or a fine of 24 up to Two Thousand Rupees or with the both.
(2) If a person roots out or cuts any tree planted pursuant to Section 16 or plies a motor vehicle with more weight in contravention of Section 16A. or objects or obstructs to or with the taking of soil, stone or sand
pursuant to Section 17 or does any act in contravention of Section 18, such person shall be punished with a fine of up to Two Thousand Rupees.
25 (3) If a person does any act in contravention of Sub-section (1) of Section 19 or objects or obstructs to or with any work being done by the Department of Roads pursuant to Sub-section (3) of the said Section, the
person shall be punished with imprisonment for a term not exceeding One year or a fine of 26 up to Five Thousand Rupees or with the both.
27 30A.Investigation and Filing of Cases : An employee of at least gazetted first class shall investigate into the cases of offenses punishable under this Act, and upon the completion of such investigation, the concerned chief of
office of the Department of Roads shall file such case before the Department of Roads or the authority specified pursuant to Section 31.
31. Power to try and appeal there against : 28 (1) In relation to the offenses of making obstruction while acquiring land for the purposes of Section 14, of cutting or rooting out trees planted pursuant to Section 16, or of making
objection or obstruction while taking soil, stone or sand pursuant to Section
17, of holding, throwing, installing or hanging of any goods in such a manner as to obstruct the movement of a public road in contravention of Section 18 and of doing any act within a public road or road border in
contravention of Section 19,
29 the Department of Roads or the authority specified by the Government of Nepal by publishing a Notification in the Nepal Gazette shall have the powers to make trial and impose punishment.
30 (2) In taking action pursuant to Sub-section (1), the Department of Roads or specified authority may exercise the same powers as the District Court has pursuant to the laws in force.
(3) A person who is aggrieved by an order of punishment made by the
31 Department of Roads or the specified authority pursuant to Sub- section (1) may make an appeal to the Court of Appeal 32 within Thirty Five days.
32. Delegation of authority : The Government of Nepal may delegate any or all powers conferred to the Department of Roads pursuant to this Act to any  authority.
33. Powers to frame Rules : (1) The Government of Nepal may frame Rules to implement the objects of this Act.
(2) Without prejudice to the generality of the powers conferred by Sub-section (1), the Rules may provide for on the following matters, in particular:
(a) …………..
(b) ……………
(c) Grounds for the determination of compensation for the
loss of crops, trees and other goods,
(d) ……………..
(e) Terms and conditions to be abided by in building or
placing anything of which frontage or exit is towards a
public road,
(f) Terms and conditions to be abided by while making
any road or door on either side of a public road,
(g) Matters to be abided by while making or erecting or
building any type of house, wall, sewerage, road, pillar

etc. to be made or erected in the road boundary or road
side,
(h) Specification of the height of wire or similar other
thing to be held over a public road or road boundary or
on the side of a road boundary and of the manner for
placing the same,
(i) The procedures to be followed while making any
sewerage or laying a pipe or wire crossing a public
road or road boundary,
(j) The duties of any person doing any act on a public
road in a manner to obstruct the movement and other
terms and conditions to be observed by that person.
34. Repeal and consequences thereof : (1) The Highway (Construction
Provision) Act, 2021 (1964) and the Rules framed thereunder are, hereby,
repealed.
(2) If any compensation for any land acquired under the Highway
(Construction Provision) Act, 2021 (1964) is due at the time of the
commencement of this Act, the compensation shall be paid pursuant to that
Act.

Public Service Commission Act, 2066 (2010)

Public Service Commission Act, 2066 (2010)
Date of authentication and publication
2066-10-13 (27 Jan. 2010)
Act Number 11 of the Year 2066 (2010)
An Act made to provide for provision relating to functions, duties,
powers and procedures of Public Service Commission
Preamble : Whereas, it is expedient to make timely provisions on the functions,
duties, powers and procedures of Public Service Commission;
Now, therefore, be it enacted by the Constituent Assembly pursuant to
Article 83 of the Interim Constitution of Nepal 2063 (2007)

Chapter – 1 Preliminary

Chapter – 1 Preliminary
1. Short title and Commencement :

(1) This Act may be called “Public Service Commission Act 2066 (2010).”
(2) It shall come into force immediately.
2. Definition : Unless the subject or the context otherwise requires; in this Act,
(a) “Constitution” means the Interim Constitution of Nepal, 2063 (2007).
(b) “Commission” means Public Service Commission constituted pursuant to Article 125 of the Constitution.
(c) “Chairperson” means the chairperson of the Commission.
(d) “Member” means the member of the Commission and this term also includes the Chairperson.
(e) “Authority” means an official with powers to make appointment in a post pursuant to prevailing law.
(f) “Civil service or position” means all services or positions in the Government of Nepal, other than the services and positions of army officers or solders, armed police and police personnel and such other
services and positions as are excluded by any Act from the civil service or positions thereof.
(g) “Other government service” means any other government service other than civil service, armed police service and police service.
(h) “Public body” means any corporate body of which the Government of Nepal owns or controls Fifty percent or more of shares or the assets.
(i) “Fulfillment of Vacancy” means the fulfillment made by open competition or by promotion for the vacant post of the civil service.
(j) “General Principles” means the general principles to be followed in the course of making an appointment and promotion to any position of Army service, armed police service or police service or other government service; and to be followed by public body in the course of making appointment and promotion to any position of the service of the public body and taking departmental action against any employee.
(k) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules made under this Act.

Chapter -2  Transaction of Business and management of the Commission

Chapter -2  Transaction of Business and management of the Commission
3. Establishment of the office of Commission :

(1) For the transaction of the business and management of the Commission there shall be a head office at central level and the Commission may, as per necessity, establish it’s Department and other offices in regional, zonal or district level.
(2) The site of the Department and office to be established pursuant to Sub-section (1) shall be as prescribed by the Commission.
(3) The office existed at the time of the commencement of this Act shall be deemed to have been established under this Act.
(4) The organizational structure and the number of ceiling of the employee in the Commission shall be as approved by the Government of Nepal in the recommendation of the Commission.
4. Meetings of Commission :

(1) All the functions to be performed by the Commission in accordance with the constitution, this Act or other
prevailing laws shall be carried out as decided by the meeting of the Commission.
(2) The Chair person shall preside over the meetings of the Commission and in his/her absence the senior most member among the presented members shall preside over the meetings of the Commission.
(3) The meetings of the Commission may be held if at least Fifty percent members of the total members of the Commission are present.
(4) The majority opinion of the meeting of the commission shall be deemed as the decision of the meeting and in case of a tie the person who chairs the meeting shall exercise the casting vote.
(5) The minuets of the meeting shall be authenticated by the Secretary of the Commission.
(6) The other procedures relating to the meeting of the Commission shall be as determined by the Commission itself.
5. Allocation of Work : The allocation of work to be performed by the Chairperson and members shall be as prescribed by the Commission.

6. Provisions relating to Staffs :

(1) The Government of Nepal shall provide staffs as may be required for the transaction of business and
management of the Commission.
(2) The government of Nepal shall, while making transfer any employee working in the Commission from the Commission to any other office, take consent with the Commission.
7. Power to avail services of specialist or expert : (1) The commission
may, for the work to be performed by it in accordance with the
Constitution, this Act and other prevailing law, avail the services of
specialists or experts or the specialized body.
(2) The Chairperson shall nominate or select the specialists or
experts or specialized body in order to avail services pursuant to Sub-
section (1) and having obtained such services the Commission shall pay
remuneration and facilities as prescribed by it to the concerned specialist or
experts or specialized body.
8. No need to take approval : The approval of Ministry of Finance shall not
be required for the Commission to spend the moneys allocated by the
Government of Nepal for the commission under miscellaneous head and the
Commission shall be empowered to spend such money under the prevailing
law.
9. Power to liaise and to have an opinion : (1) The Commission may, in
respect of its function and duties, directly liaise, consult or take opinion
with any constitutional body or any Ministry, Department and office of the
Government of Nepal or with public body.
(2) Notwithstanding anything contained in Sub-section (1), the
Commission shall liaise with the Government of Nepal through the office
of Prime minister and the Council of Ministers for the matter to be decided
by the Government of Nepal (cabinet) which is concerned with the
Commission.
(3) If the Commission considers that it is appropriate to seek advice
on any constitutional or legal question relating the business of the
Commission, it may seek advice of Government body or the Attorney-
General or other government attorney.
10. Legal defence : In order to make a petition to or to institute a case on
behalf of the Commission in any office or court, or to prepare necessary
affidavit/document or to defend; or to make written reply or statement or to
defend in case any legal proceeding or a lawsuit has been filed by any one
against the Commission, the Commission may, on the basis of necessity or
propriety, procure service of the Government attorney or seek advice of
other legal practitioner or the Government attorney both upon the advice of
the Attorney-General.
11. The Commission may offer suggestion : (1) In the course of business
carried out by the Commission or on the basis of conclusion drawn from
the seminar or discussion organized by it, it may offer the suggestions to
reform in service law of civil service to the concerned body.
(2) The commission shall include the particulars of the suggestion
offered by it pursuant to Sub-section (1) in its annual report.
12. The Commission may cooperate in the work of fulfillment of
vacancy : Notwithstanding anything contained in the prevailing law, the
Commission may provide necessary assistance for the works as prescribed
including examination to make fulfillment of the vacant post of army
service, armed police service, police service, or service of public body
which has consulted with the commission.
13. Power to supervise and monitor : (1) The commission may supervise or
cause to supervise as to whether the appointment, promotion or
departmental action made by Constitutional body or the Ministry,
Secretariat, Department or Office of the Government of Nepal in
accordance with the constitution, this Act or other prevailing law and the
procedures and the conditions prescribed by the Commission from time to
time, are abided by or not.
(2) The Commission may monitor or cause to monitor as to whether
the body authorized to operate or manage army service, armed police
service or police service or other government service or the service of
public body which has taken consultation with the commission in regard to
general principles has acted or not in accordance with the general principles
issued by the Commission.
14. Power to declare an act as unlawful act, or to cancel : (1) In the
course of supervise or cause to supervise pursuant to Sub-section (1) of
Section 13, if the Commission finds that any appointment, promotion or
departmental action has been carried out without fulfilling the procedure
and the condition prescribed by the Constitution, this Act and other
prevailing law and the procedure and the conditions prescribed by the
Commission from time to time, it may declare such appointment,
promotion or departmental action as unlawful action.
(2) Notwithstanding anything contained in the prevailing law, if the
Commission finds that any person has been appointed in a post to be
appointed under the power delegated by the Commission without fulfilling
the procedure and conditions determined by this Act or the Rules framed
here under, it may cancel such appointment at any time.
(3) If it is proved that any particulars submitted to the Commission
by a person in order to be a candidate for the examination under the
vacancy announcement (advertisement) made by the Commission is fake
and incorrect, it may cancel the application of such candidate or his/her
examination or interview; and may forward a recommendation to the
concerned body in order to take action against him/her in accordance with
prevailing law if he/she has already been appointed.
(4) In the course of monitoring or causing to monitor pursuant to
Sub-section (2) of Section 13, , if the commission finds that it’s consultation
in respect of general principles has not been followed, it may issue an order
in name of concerned body to rectify or cancel the action.
15. Power to forward recommendation for taking departmental
action : (1) if a employee involved in the work of examination, commits an
irregular act in the examination center, the commission may immediately
remove him/her from the assignment of examination or on the gravity of
offence may forward a recommendation to the concerned authority for
taking departmental action against him/her in accordance with the
concerned service law in force.
Provided that, in case of employee of the Commission, it may take
action against him/her itself or may forward a recommendation to the
concerned authority in order to take action.
(2) In case of employee who has committed any irregular act
pursuant to Sub-section (1) or (2) of Section 14, the Commission may
forward a recommendation to the concerned authority for taking
departmental action against him/her in accordance with the prevailing
service law.
(3) If the commission forwards a recommendation for departmental
action pursuant to Sub-section (1) or (2), the concerned authority shall take
departmental action against him/her within the period prescribed by the
Commission and shall inform the Commission thereof as soon as possible.
16. Commission may frame general principles : (1) The commission may
frame general principles to be followed in the course of making
appointment or promotion to any position of the army service, armed police
service or police service or other government service or to be followed
while making appointment, promotion or taking departmental action
against any employee in the service of any public body.
(2) In the course of framing general principles for public body
pursuant to Sub-section (1) the Commission may frame general principle in
such a way to be applied equally for all public bodies or to be applied
separately for the concerned public body only.
(3) The general principles framed by the Commission pursuant to
Sub-section (1) or (2) shall be published.
17. Consultation on general principles : (1) The public service
Commission shall be consulted on the general principles to be followed in
the course of making appointment and promotion to any position of the
army service, armed police service or police service or other government
service.
(2) A public body may consult with the Commission on the matter of
prevailing law relating to the conditions of service of the employee in the
service of such body and on the general principles to be followed in the
course of making appointment and promotions to any position of such
service and taking departmental action against any such employee.
(3) The concerned authority or public body shall frame service law
for its employee on the basis of consultation obtained from the
Commission.
18. Power to carry out Research and promotional work : The
Commission may carry out research and promotional work from time to
time in order to make civil service more competent and effective and to
increase attraction towards Civil service.
19. Co-ordination and co-operation : The Commission may co-ordinate or
promote mutual relation or co-operation with national and international
institutions established having similar objectives like the commission.
20. Delegation of Power : The commission may delegate any of it’s functions,
duties and powers conferred on it by the Constitution, this Act or Rules
framed here under or other prevailing law, to any of its member, or a
Committee of members, or any of its’ office or employee or any other
employee of the Government of Nepal to be exercised and complied with
subject to the condition prescribed by it.
(2) The Commission may withdraw the power delegated pursuant to
Sub-section (1) at any time.
21. Power to provide additional facilities : If the commission has to depute
to it’s Member or employee for overtime or has to assign special task
related with the function of the Commission to it’s Member, employee or
any person, it may pay the amount for over time or special task and the
amount of expenses made for meal and Tiffin as additional facility

Chapter – 3 Determination of academic qualification, curiculum and other provision

Chapter – 3 Determination of academic qualification, curiculum and other provision
22. Determination of academic qualification :

(1) The minimum academic qualification to be required for a post of civil service to be filled by open
competition shall be as determined by the prevailing service law of concerned service group or sub-group.
(2) Prior to determination of academic qualification pursuant to Sub- section (1), the concerned Ministry, Secretariat or body which is authorized to manage and operate the concerned service, group or sub-group shall
consult with the Commission.
(3) Notwithstanding anything contained in other prevailing law, it shall be decided by the Commission as to whether a qualification obtained by a candidate from a university or an academic institute is equivalent to
the qualification determined for any position of civil service.
23. Curricula and Testing Method : The curricula of exam to be given by the commission in order to fill the vacant post of civil service, the full marks, pass mark, testing method of such curricula and other provisions regarding the curricula shall be as prescribed

Chapter 4 Provision relating to fulfillment of vacant post

Chapter 4 Provision relating to fulfillment of vacant post
24. Method for selection of candidate : The Commission may, while
selecting suitable candidate for the fulfillment of the vacant post in civil
service, adopt any one of the following methods or more than one method;
(a) Written examination
(b) Practical examination
(c) Interview
(d) Other methods prescribed by the Commission from time to time.
25. Method of fulfillment of vacancy : (1) The number of vacant post of
civil service to be filled by open competition and by promotion shall be
determined on the basis of percent as referred to in the prevailing service
law; and such vacancy shall be filled accordingly.
(2) The method of examination, to be held for the fulfillment of the
vacant post by open competition or by promotion, exam fee, the format of
application, the fee for application form and other provisions regarding
examination shall be as prescribed by the Commission.
26. Requisition for vacancy fulfillment : In order to fill the vacant post of
civil service, the authority shall make requisition with the commission upon
mentioning the name of concerned service, group, sub-group, class, number
of post, determined job description and the minimum qualification to be
required for the concerned post in the formal request form as prescribed.
27. Vacancy announcement : (1) After determining the number of post
pursuant to Sub-section (1) of Section 25, the Commission shall publish
separate vacancy announcement (advertisement) for open competition and
promotion.
(2) The Commission shall set out, inter alia, the time limitation to
register the application form, the number of vacant post, examination fee
and other details as prescribed in the vacancy announcement to be
published pursuant to Sub-section (1).
28. Power to revoke vacancy announcement or examination : (1) If the
concerned authority makes written request with the Commission to revoke
the vacancy announcement published by the Commission in advance of the
taking an examination citing the fulfillment of vacant post should not be
taken place under such announcement or the concerned post is not needed
and mention the reason thereof, the commission may revoke such vacancy
announcement.
(2) If, any irregularality takes place in the centre of examination
conducted by the Commission or the examination could not take place
partially or totally due to any obstacle, the Commission may, upon
mentioning the reasons, revoke the exam of that day or revoke the partial or
total examination of the concerned vacancy announcement.
29. Commission shall refund exam fee : (1) if the vacancy, announcement
has been canceled or the application form has been rejected pursuant to
Sub-section (1) of Section 28, the Commission shall refund examination fee
to the applicant if he/she produces an application before the Commission to
get refund within the period prescribed by the Commission.
30. Question setting and operation of exam : (1) The setting of question
paper to be required for the examination to be held by the Commission and
its moderation shall be as prescribed.
(2) The Commission shall, in order to select the candidate, conduct
the examination as per the necessity of the job nature of the concerned post
and the method of the exam shall be as prescribed by the Commission.
31. Power to restrict or expel : (1) If a candidate commits any irregularity in
an examination centre or violates the condition prescribed by the
Commission, the Commission may revoke the examination of such
candidate and restrict him/her with being disqualified to be a candidate in
an examination to be conducted by the Commission after the period of
restriction for the period prescribed by the Commission.
(2) If a candidate termagantly hinders or obstructs in the operation of
examination, the superintendent of examination centre may immediately
expel him/her from the examination centre and if he/she has been expelled
the examination of total subject taken by him/her under that vacancy
announcement shall, ipso facto, be cancelled.
32. Coding in Answer-sheets : (1) After completing written or practical
examination to be conducted by the Commission, it shall put code number
on answer sheet in accordance with the process as prescribed.
(2) For the purpose of checking answer-sheets by electronic system,
the barcode as prescribed may be used in answer-sheets.
(3) Should the barcode have been used pursuant to Sub-section (2) it
shall not be required to put separate code number on answer sheets.
33. Checking of answers sheets : (1) After putting code number on answer-
sheets pursuant to Section 32, the Commission shall cause to check answer
sheets by experts or specialists.
(2) The other provision regarding the checking of answer-sheets
shall be as prescribed.
34. Result publication of written or practical test : (1) While publishing
the result of written or practical test, the Commission shall, in such number
of ceiling as prescribed on the basis of ratio of vacancy, publish the result
of examination upon mentioning the roll number, name and surname etc of
the candidate who have obtained the highest marks from amongst the
candidates who have passed in the examination.
(2) While publishing the result pursuant to Sub-section (1) the
Commission shall set out the programme and date of further test, including
interview, to be conducted in various steps.
35. Formation of Interview Committee : (1) It shall be formed an Interview
Committee as prescribed in Head office to be headed by Chairperson or by
a Member or by any other person designated by the Chairperson in order to
select the candidate.
(2) Except in Head office of the Commission the formation of
Interview Committee in other offices of the Commission shall be as
prescribed.
(3) The commission shall maintain inclusive participation while
forming interview Committee pursuant to Sub-section (1) or (2.
Explanation: For the purpose of this Sub-section, if at least one
person is nominated as a member of an Interview Committee from
amongst the persons of women, indigenous nationalities, madhesi, Dalit,
and remote areas, it shall be considered to have been inclusive.
(4) The other provisions regarding interview shall be as prescribed.
36. Publication of final result : (1) After completing total process regarding
the selection of candidate the Commission shall publish the final result of
the test upon mentioning the candidate’s roll number, name, surname,
address including the office recommended for him/her on the basis of merit
list who have secured highest marks.
(2) While publishing final result pursuant to Sub-section (1) the
Commission shall publish including the list of alternative candidates, in
such numbers as prescribed.
(3) While publishing final result pursuant to this Section, the
Commission shall public a list of temporary candidates in such numbers as
prescribed from amongst the candidates who have not been selected from
the interview and have obtained minimum pass mark.
(4) While recommending for temporary appointment from the list of
candidates pursuant to Sub-section (3), the Commission shall recommend
the candidates in the first merit list who have been included in alternative
list and have not got permanent appointment.
37. Recommending for appointment : (1) The commission shall, on the
basis of merit list, recommend the authority to appoint the candidates
pursuant to Sub-section (1) of Section 36.
(2) If the Commission revokes the recommendation of appointment
of a candidate pursuant to Sub-section (3) of Section 14 who was
recommended for the appointment pursuant to Sub-section (1) or in other
condition as prescribed, the Commission shall recommend alternative
candidate on the basis of merit list for the appointment.
(3) The other provision relating to the recommendation to be made
for the appointment of candidates shall be as prescribed.
38. Preliminary test : (1) The commission may take joint or separate
preliminary test for a post of a service, group and sub-group prescribed by
it.
Provided that, among the posts for which the preliminary test
requires the commission shall have the power to exclude the posts allocated
for a particular competition from the requirement of preliminary test.
(2) The commission shall publish the announcement of preliminary
test pursuant to Sub-section (1) upon setting out necessary particulars
thereof.
(3) If the preliminary test is carried out by the Commission pursuant
to Sub-section (1) only those persons passed in such test may be eligible to
be a candidate for the vacant post of concerned service, group and sub-
group to be filled by open competition.
(4) A person who has been passed in the preliminary test may,
subject to age bar as referred to in prevailing service law, be a candidate for
a vacant post to be filled by open competition for such period as prescribed
by the Commission from the date of being passed in such examination.
(5) The fee of preliminary test and other provision shall be as
prescribed by the Commission.
39. Electronic medium may be used : The Commission may use electronic
medium for the work of requisition of vacant post, vacancy announcement,
operation of examination and result publication etc on the basis of
appropriateness.
40. Duty to extend co-operation : (1) It shall be the duty of constitutional
body or Government office or academic institution to provide employee,
building or class room to the Commission for carrying out examination.
(2) The commission shall pay for the employee who have been
deputed by it for its work pursuant to Sub section (1) and pay the rent for
using the building or class room

Chapter -5 Procedure relating to consultation

Chapter -5 Procedure relating to consultation
41. Procedure to be followed to seek consultation of the Commission :
(1) While seeking consultation of the Commission on the laws in force relating to the condition of service of the employee in civil service, it shall be taken through the Ministry or Secretariat which is authorized to operate
and manage the concerned service and group. If it requires to make a new law relating to the conditions of the civil service or to amend in existing law it shall be forwarded to the Commission upon setting out reasons
thereof and other necessary particulars.
(2) While seeking consultation of the Commission on the general principles to be followed in the course of making appointment or promotion to any position of civil service and taking departmental actions against an
employee of such service, the said consultation shall be taken along with the decision thereof from the commission through the Ministry or Secretariat which is authorized to operate and manage the concerned service and group.
(3) While seeking consultation of the Commission on the matters concerning the suitability of any candidate to a civil service position for a period of more than Six months, it shall be forwarded to the Commission by encompassing the decision of concerned Ministry or Secretariat or body.
(4) While seeking consultation of the Commission on the matter concerning the suitability of any candidate for transfer or promotion from one service to another within the civil service or from any group or sub-
group to another group or sub-group within civil service or from any other government service to the civil service or to transfer or promote any employee working in any position which does not require consultation with
the Commission to any position which requires consultation with the Commission, the concerned Ministry which is authorized to operate and manage the concerned service and group shall, along with the decisions
made by the Council of Ministers, forward it to the Commission upon setting out the concerned candidate’s name, address, academic qualification, experience and other particular regarding his/her appointment.
(5) While seeking consultation of the Commission on the matters
relating to departmental action against any civil employee the authority
who imposes penalty shall, by completing the detail procedure thereof as
referred to in prevailing service law and by evaluating the clarification and
evidence submitted by the concerned employee on the matters of charge
and proposed penalty against him/her, forward the original files thereof
along with the proposed penalty to be imposed on him/her and the decision
of authority to punish him/her.
(6) While seeking consultation of the Commission on the formation
of civil service and other necessary government services, it shall be
forwarded to the Commission upon clearly setting out, inter alia, the
objectives of formation, the group or sub-groups to be remained under that
service, division of class, appointment, promotion, the other conditions of
service and the matters of uniformity, co-ordination and adjustment to be
maintained with civil service and various services under government
services.
(7) While seeking consultation of the Commission on the general
principles pursuant to Sub-section (1) or (2) of Section 17, it shall be
forwarded to the Commission through the concerned Ministry or Secretariat
upon setting out the reasons thereof and necessary particulars.
(8) The other provision regarding the seeking of consultation shall
be as prescribed.
42. The procedures to be followed while giving consultation by the
Commission : (1) If the consultation has been sought from the
Commission, it shall, in order to make civil service competent and
effective, give consultation upon considering the matters to be made
different provision and to be made uniform provision on the basis of job
nature and condition of civil service.
(2) If the consultation has been sought from the Commission
pursuant to Sub-section (2) of Section 41, the Commission shall give
consultation upon considering including general principles set by it
regarding to civil service.
(3) If the consultation of the Commission has been sought pursuant
to Sub-section (3) or (4) of Section 41, it shall test the suitability of the
candidate by one or more than one methods as mentioned in Section 24 as
per necessity upon considering the job nature of civil service or post and
shall give consultation accordingly.
(4) If the consultation of the commission has been sought pursuant to
Sub-section (5) of Section 41 it shall examine whether the procedure
prescribed by the prevailing service law has been completely followed or
not; and shall cause to follow the procedure in case the procedure has not
been completely followed and give consultation upon taking further
evidence as per necessity with the authority.
(5) If the consultation of the Commission has been sought pursuant
to Sub-section (6) of Section 41, it shall give consultation upon considering
the objectives, utility and significance of the proposed service, group or
sub-group and the matters which make civil service and other government
service further competent and effective.
(6) If the consultation of the Commission has been sought pursuant
to Sub-section (7) of Section 41, it shall consider the nature of service and
situation and give consultation in such a way to be applied common
provision for all as for as possible.
(7) For the purpose of giving consultation pursuant to this provision,
the Commission may procure the opinion and advice of experts of the
concerned matter.
(8) The other procedures to be followed by the Commission to give
consultation shall be as prescribed by if.
43. Implementation of the consultation of the Commission : (1) After
taking consultation of the Commission on the matter to be consulted with it
pursuant to the Constitution, this Act or other prevailing law, it shall be the
obligation of the authority, who has sought the consultation, to implement
or cause to implement the consultation provided by it on the matter.
(2) If any difficulty arises to implement the consultation provided by
the Commission due to any specific reason or situation and the authority
who has taken the consultation may request with the commission for
reconsideration of the consultation upon setting out the reasons thereof and
if the Commission receives the said request and finds adequate ground and
rationale to amend in the pre-consultation in the course of consideration, it
may provide re-consultation in the matter.
(3) The concerned authority shall implement the consultation provided by the Commission relating to departmental action within a period prescribed by it and informs the commission thereof.
44. Power to declare the action to be void : In case any act or action has been done or taken without taking consultation of the Commission which requires consultation with it pursuant to the Constitution, this Act or other
prevailing law, it may declare the said act or activity to be void.

Chapter -6 Miscellaneous

Chapter -6 Miscellaneous
45. Confidentiality of document:

(1) The document and instrument relating to the examination of the Commission shall be confidential.
(2) Notwithstanding anything contained in Sub-section (1), the instrument or particulars thereof as prescribed by the Commission regarding the examination may be provided to concerned person or may be published.
46. Complaint may be lodged :

(1) A person, who is not satisfied with the act performed by the authority under the power delegated by the
Commission, may lodge a complaint with the Commission or with authority prescribed by it within a period of Thirty five days from the date of such commission.
Provided that, in case where a separate provision of appeal has been provided it shall be governed by the said provision.
(2) If a complaint has been lodged pursuant to Sub-section (1), the Commission may issue an appropriate order upon making an inquiry in to the complaint and in the course of inquiry if it appears that there is no need
to proceed any further action it may terminate the complaint.

47. Power to give reward : (1) The commission may, among the employee working at Head or other offices of the Commission, select three employee who have done best work in the year and provide monetary reward each
year.

(2) For the purpose of Sub-section (1) the procedure to select the employee who has performed best work shall be as prescribed by the Commission.
48. Power to determine charge and fee : Notwithstanding any thing contained in this Act, the Commission may determine fee and charge as required with regard to its business.

49. Annual Report : The commission shall submit its annual report, to be submitted under the Constitution, generally within Three months from the ending of fiscal year.

50. To be governed by prevailing law : The matters set forth in this Act shall be governed by this Act and other matters shall be governed by the prevailing Act.

51. No adverse effect : No matter mentioned in this Act shall make adverse effect on the matters of functions, duties and power falling within the ambit of judicial Service Commission.

52. No suit to be entertained : No suit shall be instituted in any court in respect to any action taken with bonafide intention under this Act or Rules made there under by the Commission or the chairperson or any member or
employee.

53. Power to frame Rules : In order to implement this Act, the Commission shall have the power to frame Rules and such Rules shall come in to force after being published in Nepal Gazette.

54. Power to make Guidelines : In order to transact the business or cause to transact the business to be transacted by the Commission it shall, as per necessity, have the power to frame Guidelines and to give effect it.

55. Power to remove difficulties : If any difficulty arises in connection with the implementation of this Act, the Commission shall have the power to provide necessary arrangement to remove such difficulty without
prejudicing the sprit of this Act.

56. Repeal and saving :

(1) Public service commission (Procedure) Act, 2048 is, hereby, repealed.
(2) All actions taken and proceeding initiated pursuant to Public Service Commission (Procedure) Act, 2048 shall be deemed to have been taken or initiated pursuant to this Act

The Prevention of Corruption Act, 2059 (2002 A.D)

The Prevention of Corruption Act, 2059 (2002 A.D)
Date of Authentication and publication
3 Asadha, 2059 (June 17, 2002)
Act number 1 of the year 2059 (2002)
Preamble: Whereas, it is expedient to make timely legal provisions relating
to prevention of corruption with a view to maintaining peace, convenience,
financial discipline, morality and good conduct among general public;
Be it enacted by Parliament in the first year of the reign of His Majest y ‘s the King
Gyanendra Bir Bikram Shah Dev

Chapter – 1 Preliminary

Chapter – 1 Preliminary
1. Short Title, Extent and Commencement:

(1) This Act may be called the “Prevention of Corruption Act, 2059 (2002 A.D.).”
(2) It shall be extended throughout Nepal and applicable to all Nepalese citizens, public servants residing anywhere outside Nepal and to the non- Nepalese citizens residing in foreign countries having committed
any act that may be deemed to be corruption under this Act.
(3) It shall come into force immediately.
2. Definitions: In this Act, unless the context otherwise requires-
(a) “Corruption” means offences punishable under Chapter -2.
(b) “Graft” means cash, goods or any type of gain or benefit and the term also includes bribe.
(c) “Public institution” means the following institutions:-
(1) A company, bank or a committee fully or partially owned or controlled by Government of Nepal; or a
commission, organization, authority, corporation, academy, board, center, council or any other corporate body of such nature established by Government of Nepal;
(2) A university, college, school, research center and any other similar academic or educational institution run by
Government of Nepal or on the full or partial donation from Government of Nepal;
(3) Local bodies constituted under the Local Self-Governance Act, 1999;
(4) An institution run on loan, grant or guarantee of Government of Nepal;
(5) An institution fully or partially owned or controlled by the institution referred to in Sub-clauses (1), (2), (3) or (4) or obtained grant from such institution; and (6) Any other institution prescribed as public institution by
Government of Nepal in a notification published by the Nepal Gazette.
(d) “Public Servant” means the person holding a public office under the prevailing laws and the term also includes the following persons:-
(1) person appointed, nominated or elected under an oath to Government of Nepal or to public institution, or under the terms, contracts or agreements concluded with Government of Nepal or with any public institution, or holding any office of public responsibility for salary or allowances or remuneration or benefit or position with or without any type of gain from Government of Nepal or any public institution;
(2) A person appointed as an arbitrator or any other person appointed in the same position pursuant to the prevailing laws to resolve or adjudicate any dispute;
(3) A person appointed, elected or nominated as liquidator, surveyor or any other person working in the same capacity in accordance with the prevailing laws;
(4) A person designated as public servant by Government of Nepal in a notification published in the Nepal Gazette.
(e) “Revenue” means any type of tax, fee, charge, royalty, fine and other amount of this type to be paid or given to Government of Nepal or public institution, and the term also includes interest or fine to be charged on such tax, fees, royalty and other amount of this type.
(f) “Degree of offence” means the degree of offence to be determined on the basis of circumstances and situation in which the offence has been committed or attempted to be committed, the gravity of such offence or the intention, qualification, position and capacity of the person who has committed or attempted to commit any offence
punishable under this Act.
(g) “Investigating Authority” means the body or official authorized to conduct inquiry, investigation and to file cases relating to corruption in accordance with the prevailing laws.

Chapter – 2 Provisions Relating to Offences of Corruption and Punishment

Chapter – 2 Provisions Relating to Offences of Corruption and Punishment
3. Punishment to Giver and Taker of Graft:

(1) Whoever, being, or expecting to become, a public servant accepts or agrees to accept graft amounting as follows for him/herself or for any other person in consideration of his/her performing or having performed or of
forbearing to perform or having forborne to perform any act pertaining to his/her office or the related act or in consideration of favouring or disfavouring or causing or not causing a loss or of having favoured or disfavoured or having caused or not caused a loss to any person while carrying out his/her official functions, shall be liable to a punishment of imprisonment as follows and of a fine as per the amount involved depending on the degree of the offence. In case the graft has already been accepted, it shall be confiscated.
(a) Up to twenty five thousand rupees. Imprisonment for a term not exceeding three months.
(b) More than twenty five thousand Imprisonment for a term from rupees to fifty thousand rupees. three to four months.
(c) More than fifty thousand rupees to Imprisonment for a term from four one hundred thousand rupees. to six months.
(d) More than one hundred thousand Imprisonment for a term from six rupees to five hundred thousand months to one year and six months. rupees.
(e) More than five hundred thousand Imprisonment for a term from one rupees to one million rupees. year and six months to two years and six months.
(f) More than one million rupees to two Imprisonment for a term from two million and five hundred thousand years and six months. rupees.
(g) More than two million and five Imprisonment for a term from four hundred thousand rupees to five to six years.
million rupees.
(h) More than five million rupees to ten Imprisonment for a term from six million rupees. to eight years.
(i) Whatsoever amount above ten Imprisonment for a term from million rupees. eight to ten years.
(2) Whoever, other than a public servant, accepts or agrees to accept graft amounting as follows for him/herself or for any other person with the intention of convincing any public servant to perform or forbear to perform any function under his/her office or position or for convincing to perform or forbear to perform any such act or with the intention of favoring or disfavoring any person or causing or not causing any loss or for convincing to perform or forbear to perform any such act while carrying out any function under his office or position, shall be liable to a
punishment of imprisonment as follows and of a fine as per the amount involved depending on the degree of the offence. In case the graft has already been accepted, it shall be confiscated.
(3) Whoever gives a graft to a public servant or any other person in order to do or forbear to do any function pursuant to Sub-Section (1) or (2), shall be liable to a punishment pursuant to Sub-Section (1) depending on the
degree of the offense committed.
(4) Whoever abates to commit an offence punishable under this Section shall, if he/she is a public servant, be liable to a punishment as same as the punishment prescribed for the same offence, and if he/she is any other person, shall
be liable to half of the punishment for that offence on the basis of the degree of the offence irrespective of whether or not the offence has been committed because of such abetment.
4. Punishment to Public Servants Accepting Goods or Service Free of Cost or at Lower Prices: Whoever, being a public servant, accepts or agrees or attempts to accept, without a prior approval of Government of Nepal or public
institution, any goods or service free of cost or at lower prices for him/herself or for any other person, from any individual, having knowledge that such individual is related to or is likely to be related to any act related to his/her office or any act carried out or to be carried out by him/herself is related to any function of his office, shall be liable to a punishment of imprisonment for a term from six months to one year depending on the degree of the offence and a fine equal to the amount involved and in case such goods is already accepted, it shall be confiscated and in case of the service, the price thereof shall be fixed and a fine equal to theprice of such service shall be imposed.
5. Punishment for Taking Gift, Present, Award or Donation: (1) Whoever, being a public servant, accepts, without a prior approval Government of Nepal or a public institution, any type of donation, gifts, presents, awards or any
type of benefit him/herself or through any member of his/her family or other person, so as to causing an impact in any way on any of his/her works which is supposed to be carried out by him/her according to the office he/she assumes; or any public servant who borrows from a person related to a work which he/she
has to carry out according to the office he assumes, shall be liable to a punishment of imprisonment from three to six months depending on the degree of the offence and the amount shall be confiscated.
(2) Whoever, being a public servant, has received any present or gift in exchange of a gift or present brought from the amount of a fund belonging to Government of Nepal or a public institution, such gift or present
shall be immediately submitted to his/her office. If not submitted, it shall be deemed to have committed the offence referred to in Sub-section (1) and such gift or present shall be confiscated having him/her punished accordingly.
6. Punishment for Taking Commission: In case any type of commission,
remuneration, brokerage fee, benefit or advantage is liable to be paid while
performing duties by a public servant or while purchasing or hiring or taking or
giving on a lease any commodity or service necessary for Government of
Nepal or a public institution or while awarding or accepting a contract by
Government of Nepal or a public institution or while selling or hiring or
taking or giving on a lease any commodity or service produced by Government
of Nepal or a public institution, such commission, remuneration, brokerage fee,
benefit or advantage shall be submitted to the concerned office within seven
days from the date of receipt. In case not submitted as such, such public servant
shall be deemed to have committed the offence referred to in Section 3 and the
amount shall be confiscated having him/her punished accordingly.
7. Punishment to Public Servants for Leaking Revenue: Whoever, being a
public servant under the duty of collecting revenues, causes revenue leakage or
help or abets any person for its leakage having been involved him/herself in
any of the following manners, shall be deemed to have committed the offence
referred to in Section 3 with regard to the amount of revenue so leaked and
he/she shall be liable to the same punishment of imprisonment, and double of
the amount of revenue leaked shall be fined: –
(a) To assist any person in the act of leaking revenue in any manner
whatsoever, having accepted any cash or kind, fee, prize or donation
or any type of other benefit or forbear to collect revenue or to assist or
cause to assist to collect less revenue having caused loss to Government
of Nepal or a public institution by taking or not taking any type of gain
from any person;
(b) To assess or assist to assess less revenue or to assess revenue to
the effect of not charging revenue at all by not going through the
documents or not investigating such documents or by not collecting
necessary evidence while assessing revenue as required by the
existing law;
(c) To embezzle the revenue collected by not depositing it in
accordance with the prevailing laws;
(d) To release or assist to release goods, by making difference in the
invoice, quality or quantity of such goods, and without collecting
the prescribed revenue while assessing the revenue or carrying out
valuation of such goods.
8. Punishment to Public Servants for Getting Illegal Benefit or Causing
Illegal Loss with Mala fide Intention: (1) Whoever, being a public servant,
commits any of the following acts with the mala fide intention of getting
illegal benefits for him/herself or for any other person, or of causing loss to
Government of Nepal or public institution, shall be liable to an
imprisonment of a term from three months to three years depending on
the degree of offence, and in case the amount involving the offence is
known, such amount shall be confiscated having him/her fined
accordingly. In case such amount is not known, an imprisonment for
a term from three months to three years and a fine from ten thousand to
fifty thousand rupees shall be imposed.
(a) To show more costs or works in an unnatural manner
without any ground of justification while conducting physibility
study of, or setting norms for, a project.
(b) To use or allow to use the construction materials of lower
quality than that of the prescribed quality, or to certify or
to approve the use of such materials as the materials of
prescribed quality;
(c) To degrade the quality of construction work or to change the
form or shape thereof or to carry out or cause to carry out
construction works in contravention of the prescribed
terms, conditions and standard; or to certify or to
approve such construction work as qualitative and under
the prescribed terms and conditions without any reasonable
ground;
(d) To carry out or cause to carry out construction works having
increased or amended the costs estimate in an unnatural manner
and without any reasonable ground;
(e) To give or receive payment having prepared false bills or
receipts or to give or receive double payment of bills;
(f) To procure or cause to procure excessive quantity of goods in
an unnatural manner than the quantity needed without reasonable
grounds;
(g) To carry out or cause to carry out unnatural valuation of a
government property, a property of a public organization or of
public property;
(h) To register, occupy or use or to cause to register, occupy or use
a government or public property in one’s own name or in the
name of other in an illegal manner;
(i) To value or cause to value a collateral security to be
mortgaged in the name of a governmental or public
organization in an excessive and unreasonable prices than the
real prices;
(j) To procure or cause to procure goods of degrading quality,
date expired and to procure or cause to procure goods
having paid higher prices in an unnatural manner.
(2) In case any public servant does not return a vehicle or a facility
available to him/her by virtue of his/her official position within the
prescribed time after the expiry of the official position without any
reasonable ground, he/she shall be liable to a fine from one thousand to
five thousand rupees depending on the degree of the offense and such
vehicle or facility shall be taken back.
(3) Whoever, being a public servant, causes any type of loss to a
governmental or public property with mala fide intention having
committed any act excluding the acts referred to in Sub-Section (1) and (2),
shall be liable to a punishment of imprisonment not exceeding two years or of
a fine equal to the amount of the loss or both depending on the degree of
the offence.
(4) In case any person other than a public servant, with mala
fide intention of making illegal gain to him/herself or to any other
person, does not abide by the terms and conditions of an oath,
undertaking, agreement, contract, license, permit, promissory note or
dealership entered into with Government of Nepal or a public institution or
carries out business or misuses the facilities or powers of governmental or
such institution violating the Rules or Procedures determined by or terms
and conditions accepted by Government of Nepal or such institution in a
manner prohibited by the prevailing law, he/she shall be liable to a
punishment of imprisonment not exceeding two years and be fined
according to the amount of loss and the amount of loss shall be confiscated.
9. Punishment to Public Servants Preparing False Documents: Whoever,
being a public servant under the duty of preparing documents, prepares
false documents with mala fide intention of causing loss to Government of
Nepal or Government or public institution, shall be liable to a punishment
of imprisonment for a term from three months to one year, and a fine from ten
thousand to fifty thousand rupees.
10. Punishment for Translating False Documents: Whoever, either a public
servant or any other person authorized or designated to translate
documents, wrongly translates documents, translates documents
incorporating therein false particulars or makes difference in the name,
surname, date, facts or other particulars with the mala fide intention of
causing loss to Government of Nepal, a Government or public institution;
or with the intention of getting illegal benefit to him/herself or to any other
person, shall be liable to a punishment of imprisonment for a term from
three months to one year and of a fine from ten thousand to fifty thousand
rupees, depending on the degree of offence committed.
11. Punishment for Tempering Government Documents: Whoever, either a
public servant or any other person, corrects, adds, or changes in
documents belonging to a government or public institution without
authority or in an illegal manner, shall be liable to a punishment of
imprisonment for a term from three months to two years and a fine not
exceeding fifty thousands rupees.
12. Punishment for Causing Damage to Government or Public Documents:
Whoever, being a public servant, conceals a document belonging to
government or to a public institution or causes damage to, or destroys,
such document, shall be liable to a punishment of imprisonment
from six month to one year and shall be fined from ten thousand to
fifty thousand rupees. In case any loss is incurred due to such
concealment, damage or destruction, the loss shall also be recovered.
13. Punishment for Disclosing Secrecy of Question Papers or Altering the
Result of Examination: Save in cases where the authorized person
discloses or causes to disclose question papers of an examination to be
conducted by a government body or a public institution before the
prescribed time having given reasons of special circumstances,
whoever, being a public servant, discloses or causes to disclose the secrecy
of such question paper in any manner whatsoever, or alters or causes to
alter the results of examinations with the intention of making illegal
advantage to him/herself or any other person, shall be liable to a
punishment of imprisonment from three months to one year and shall be
fined from five thousand to ten thousand rupees.
14. Punishment to Public Servants Engaging in Illegal Trade or Business:
Whoever, being a public servant, engages in trade or business in his/her
own name or in the name of other person or in partnership with others,
takes part in auction or bidding, or becomes a partner in any firm or
company or a cooperative organization while being prohibited by law, shall
be liable a punishment of imprisonment for a term from three months to
six months and a fine from ten thousand to fifty thousand rupees, and the
property earned in such a manner shall be confiscated.
Provided that, this section shall not be deemed to have hindered to
subscribe shares of a public limited company called for public subscription.
15. Punishment for Claiming False Designation: Whoever, either a public
servant or any other person falsely claims that he/she holds any position,
power, capacity or facility or enjoys such position, power, capacity or facility
of a public servant which he/she is not entitled to or displays any symbol, dress
or mark relating to a position of a public servant or wears or displays any
object resembling to such symbol, dress or mark with the intention of
leading others to falsely believe that these are the official symbols, dresses
or marks of a public servant, shall be liable to a punishment of
imprisonment for a term from one year to two years and with a fine from
fifty thousand to one hundred thousand rupees, depending on the degree
of the offence committed.
16. Punishment for Giving False Particulars: (1) Whoever, with the
intention of securing a position of a public servant, or of being continue
in such a position, or of securing any position or of getting any benefit or
facility, gives false particulars regarding his educational qualifications,
name, names of the father and grandfather, age, caste, surname, address,
nationality or qualification, or gives false description in any other matters,
or submits false certificate relating thereto, shall be liable to a punishment
of imprisonment for a term from six months to one year and of a fine from
ten thousand to twenty thousand rupees, depending on the degree of the
offense committed.
(2) Whoever, being a public servant under the duty of giving
statement of his/her property under this Act or any other prevailing
laws, gives false statement either having increased or having concealed
the actual property belonging to or registered in his/her name or under
his/her share entitlement or belonging to his/her joint family, shall be liable
to a punishment of imprisonment for a term from one month to three
months and the fine not exceeding ten thousand rupees. The property,
which has been concealed in such a manner, shall also be confiscated.
17. Punishment for Damaging Public Property: Whoever, being a public
servant, misappropriates, causes loss to or abuses or causes others to do
so, or destroys or uses for personal purposes, while performing his/her
duties pertaining to his/her office, shall be liable to be punished pursuant
to Section 3 and the property which has been misappropriated, damaged,
misused or destroyed or caused others to do so, shall be recovered from him/her.
18. Punishment for Exerting Illegal Pressures: Whoever, either a public
servant or any other person, compels any public servant or any other
person to commit any offence punishable urder this Act by exercise of
fear or threat of under, kidnapping, taking away of property, of causing
adverse impact on prestige or by exerting any other type of illegal pressure,
shall be liable to a punishment of imprisonment for a term from four to
eight years and a fine from one hundred thousand to five hundred thousand
rupees.
19. Punishment for Giving False Report: (1) Whoever, either a public
servant or any other person authorized to carry out auditing in a
government body or in a public institution, prepares auditing report
with mala fide intention having shown the facts not done or happened
in the transaction or having concealed the facts done or happened, shall be
liable to a punishment of imprisonment for a term from three months to
one year and to a fine from ten thousand rupees to fifty thousand rupees
depending on the degree of the offence committed.
(2) Save as provided in Sub-section (1), in case any public
servant or any other person under the duty of submitting report having
conducted a study or investigation on any subject in connection with
functions of government body or public institution, prepares report with
mala fide intention having shown the facts actually not done or
happened or having concealed the facts actually done or happened, such
persons shall be liable to a punishment of imprisonment for a term from
three months to one year and to the fine from ten thousand rupees to
fifty thousand rupees depending on the degree of the offence
committed.
20. Property Deemed to be Acquired Illegally: (1) In case the statement of
property submitted in accordance with prevailing laws by a public servant
deemed to have held a public office in accordance with prevailing laws
seems to be incompatible or unnatural or in case he/she maintains an
incompatible or unsuitable lifestyle or it is proved that he/she has given
someone a donation, gift, grant, present or has lent money beyond
his/her capacity, he/she shall prove the sources from which he/she has
acquired such property and if he fails to do so, such property shall be
deemed to have been acquired in an illegal manner.
(2) In case it has been proved that a public servant has acquired property
in an illegal manner as referred to in Sub-section (1), he/she shall be liable to a
punishment of imprisonment for a term not exceeding two years as per the
amount of the property acquired in such a manner, and a fine according to the
amount of property and the illegal property acquired in such a manner shall also
be confiscated.
21. Punishment for Committing Attempts: Except otherwise provided for in
this chapter, whoever attempts to commit an offense punishable under this Act
shall be liable to half of the punishment to be imposed on the public servant or
any other person committing such offences.
22. Punishment to Accomplices: Except otherwise provided elsewhere in this
Act, the accomplices to any offense punishable under this Act shall be liable to
half of the punishment to be imposed on the public servant or any other person
committing such offences.
Provided that, the accomplice who has given cash or kind or made
available any other type of benefit to the public servant or any other person
committing an offence or who has taken such benefit shall be liable to the
punishment as equal to the person committing the offence.
23. Principal to be Deemed to have Committed the Offence in case a
Corporate Body Commits Offence: In case any firm, company or corporate
body commits any act that is deemed to be an offence under this chapter, the
partners at the time of commission of the act in case of a firm and the person
acting as the principal official in case of a company or a corporate body shall be
deemed to have committed the offence.
Provided that, in case it is proved that such act has been committed prior to
the appointment of the person acting as the principal official, the person who has
committed the act shall be deemed to have committed the offence.
Explanation: For the purpose of this Section, the “the person acting as the
principal official” means the Chairman, Board Member, General Manager,
Managing Director or the Official of a company or corporate body working in
the same capacity.
24. Additional Punishment: In case the offences under this chapter have been
committed by an office bearer of a constitutional organ or body to be nominated or
appointed by officer belonging to the special class of Government of Nepal or
officers of equivalent rank; Head, General Manager or officer of a public
institution of equivalent rank, such person shall be liable to the punishment of
imprisonment for a term of three years in addition to the punishment prescribed for
such offence

Chapter – 3 Investigations, Inquiries and Filling of Cases of Corruption

Chapter – 3 Investigations, Inquiries and Filling of Cases of Corruption
25. Investigations and Inquiries:

(1) In case the investigating authority comes to know, through any information, source or a complaint lodged by any person, that any person has committed or is going to commit corruption, it shall initiate necessary investigations, inquiries and other actions in this regard.
(2) Notwithstanding anything contained in Sub-Section (1), in case the investigating authority has received information from any source that any person has committed or is going to commit corruption, such authority
may take immediate actions including raid, seizure of documents or goods and materials or arrest of person.
26. Preliminary Inquiry: The investigating authority shall, upon having received a complaint or information that one has committed or is going to commit an offence under this Act, initiate preliminary inquiry confidentially as may be
necessary.
27. Seeking Explanation: While conducting preliminary inquiry pursuant to Section 26, in case the investigating authority is of the view that the information received is based on facts, it may, having provided particulars
relating thereto, seek for comment or explanation from the concerned body or person as may be necessary.
28. Powers of Investigating Authority: (1) The investigating authority may, while conducting investigations and inquiries into offenses of corruption under this Chapter, exercise the following powers: –
(a) To order a government body, public institution, public servant or any other person to send or submit within a certain time any relevant document, documentary evidences or any other things before it;
(b) To conduct inquiry with, or to record the statement of, the public servant or any other person accused of corruption or the person to whom the investigating authority deems to having information on the relevant facts;
(c) The investigating authority may, upon having taken explanation from or upon completing inquiry or recording
the statement of a public servant or any other person accused of corruption, release such person having executed a bond from him/her to appear as and when required, or having required him/her to appear on the prescribed date or, in case there is a reasonable cause to believe that such public servant or person may abscond or there has been a loss of an amount, the investigating authority may ask from him/her to submit a deposit or guarantee and require
him/her to appear in the prescribed date or in case no deposit or guarantee is produced, keep him/her in custody.
(2) In case the investigating authority has sent a letter having fixed a time limit to the concerned body, public servant or other person requiring to submit any document or any other material or to provide information on any matter or requiring a public servant or any other person to appear before it, it shall be done accordingly and in case not done,
it shall be as follows:-
(a) In case the concerned government body or public institution does not submit such document or material or does not provide information within the time prescribed, the investigating authority may send a letter to the concerned
government body or a public institution to take departmental action against the chief officer of the concerned government body or a public institution and in case such a letter is received, the concerned government body or a public institution shall take actions immediately.
(b) In case the concerned public servant or any other person does not submit the document or material or does not provide information or does not appear within the prescribed period, the investigating authority may impose a fine not exceeding one thousand rupees on such person.
(c) In case any government body, public institution, public servant or any other person does not do as required to do in writing by the investigating authority even after the departmental action or imposition of a fine pursuant to Clauses
(a) or (b), the investigating authority may issue arrest warrant to get the chief officer of such body or institute or
such public servant or other person appeared and get such document or material produced or acquired necessary
information from him/her. In case the chief officer of a body or institution, public servant or any other person so arrested does not submit such document or material or does not give information relating thereto, the investigating authority may order for keeping him/her in custody for a period of up to
seven days.
(3) After the investigating authority’s order for departmental
action or payment of the fine pursuant to Sub-section (2), in case the chief
officer of the concerned body or the concerned public servant or any other
person submits an application along with reasonable causes for being
unable to do as required, and if the causes are satisfactory, such order or
order of fine may be cancelled.
(4) The investigating authority may conduct or cause to
conduct a search at any place and seize any necessary materials or
document or Photostat copy thereof while conducting the search. A
receipt of the material or document so seized shall be given to the
concerned person.
29. Appointment or Designation of Investigation Officer: The investigation
authority may, in order to conduct investigation and inquiries into the
offences punishable under this Act, appoint or designate any officer under
it or any government officer or any officer of a public institution as the
investigation officer.
Provided that, while appointing or designating any government
officer, or officer of a public institution as the investigating officer,
consultation shall be held with Government of Nepal or with the Chief
Officer of the concerned body, depending on circumstances.
30. Functions, Duties and Powers of the Investigation Officer: (1) Functions,
duties and powers of the investigation officer shall be as follows:-
(a) To arrest the offender immediately and to take necessary actions;
(b) To conduct or cause to conduct search at any office, house,
building, godown, vehicle or any other places while
conducting investigation and inquiries or while collecting
evidence into offences punishable under this Act;
(c) To exercise other powers conferred on the investigation officer.
(2) While conducting investigation and inquiries into offences
punishable under this Act, the investigation officer shall have all such
powers, duties, facilities and obligation as the police is having under the
prevailing laws in respect to recording statements of the accused persons,
and preparing reports of public inquiries.
(3) While carrying out functions under Sub-section (2), the
investigation officer may exercise the powers equivalent to the powers of a
court to require the accused to appear on prescribed date or to release
him/her on deposit or on guarantee or detain him/her in case he is unable
to furnish such deposit or guarantee as may be necessary.
31. Keeping Accused in Custody: (1) The investigation officer may, in case
there is sufficient ground that any person having been taken action for an
offence under this Act may lose or destroy any evidence or cause
hindrance in the process of investigation or inquiries or cause adverse
impact thereon, keep him/her in custody having given him an order of
detention in accordance with the prevailing laws.
(2) In case the investigation or inquiries with regard to a person is
not completed within twenty four hours and it appears that the
investigation needs to be continued having him/her detained, the
investigation officer shall detain him/her after having him/her presented
before the authority hearing the case and only after getting approval
therefor from the authority hearing the case. While seeking for approval
with the authority hearing the case, the charges against the person
detained, its bases, the reason for continuing investigation having him/her
detained and if his/her statement has been recorded, the contents of such
statement shall be clearly stated.
(3) The person who has been presented before the authority
hearing the case for approval of detention pursuant to Sub-section (2)
may submit an application while being presented there requesting for his/her
physical checkup.
(4) In case a permission for detention is sought pursuant to Sub-
section (2), the authority hearing the case may, having considered whether
or not the investigation has been carried out in a satisfactory manner and
if it is found that the investigation is being carried out satisfactorily, give
approval for detention for a maximum period of six months not
exceeding thirty days at a time or time and again.
(5) While seeking for a permission for extension of time duration
of detention pursuant to Sub-section (4), the person under the custody
may, if he/she so wants, submit an application to the authority hearing the
case mentioning the reason or basis for his/her not being in detention any
longer.
32. Cooperation of Other Bodies May be Required: (1) The investigating
authority may, in course of investigations and inquiries into offenses
punishable under this Act, ask any government body or public institution
or any person for cooperation as may be necessary and it shall be the duty of
such body, institution or person to cooperate as and when required.
(2) The investigating authority may, in course of conducting
investigation and inquiries into offenses of corruption under this Act,
take the help of police force as well. While engaging police personnel in
the work, the order issued by the investigating authority shall, with regard
to the police, be equivalent to the order of the concerned Inspector General
of Police.
(3) The investigation officer may ask the police officer or
police personnel subordinate to him/her for help. It shall be the duty of the
concerned police officer or personnel to assist him/her in case the investigation
officer requires such assistance.
(4) In case the investigating authority deems it fit that because of
the very nature of the offence under investigation and inquiry, it is
necessary to consult an expert engaged in any agency to be involved in such
investigation and inquiry; the investigating authority may ask the
concerned body to make such expert available on a temporary
assignment for a specific period of time, and in case such a demand is
made, such body shall, notwithstanding anything contained in the prevailing
laws, make available the concerned expert.
33. Automatic Suspension: In case any public servant is detained pursuant to
Clause (c) of Subsection (1) of Section 28, Sub-section (3) of Section 30
and Section 31, he shall ipso facto be suspended until the period of
detention and if a case is filed against him/her pursuant to Section 36,
he/she shall ipso facto be suspended unless and until the proceedings of the case is
over.
34. Accepting Services: (1) The investigating authority may, while
conducting investigation, inquiries and taking any other actions
relating thereto, require services of experts of the concerned subject or of
specialized agencies.
(2) The investigating authority shall, in order to get the services
referred to in sub-section (1), appoint the concerned expert or specialized
agency and while appointing as such, the investigating authority shall
have to enter into an agreement having stated the functions to be carried
out by such expert or specialized agency, the powers that may be
exercised, the terms and conditions to be fulfilled, the procedures and
remuneration and other benefits which such expert or specialized agency is
entitled to.
(3) In case the investigating authority is in need of the service of
employees of Government of Nepal or of a specialized agency,
notwithstanding anything contained in the prevailing laws, such
employees shall be deputed for a period required by the investigating
authority.
35. Keeping in Postponement: While inquiring and investing under this Act,
in case it appears that the alleged offense could not be proved on the
basis of the collected evidence, the investigating authority may keep the
complaint in postponement issuing an order slip along with reasons
thereof and in case of decision of postponement, the information thereof
shall be given to the accused person and the complainant.
Provided that, nothing in this section shall be deemed to have
prevented to investigate and re-inquire on such complaint if any new evidence
is found later on.
36. Filing of cases: In connection with an accusation of commission of
corruption, in case there is a reasonable cause to believe that the accused has
committed the said offence, the investigating authority shall file a case
before the authority having powers to hear the case under the prevailing
laws.

Chapter – 4 Provisions Relating to Prevention of Corruption

Chapter – 4 Provisions Relating to Prevention of Corruption
37. National Vigilance Center:

(1) Government of Nepal may establish a National Vigilance Center under the direct control and supervision of the
Prime Minister in order to effectively control corruption-oriented acts and to promote people’s awareness against corruption.
(2) Government of Nepal may designate a special class officer of the civil service as the chief of the Center referred to in Sub-section (1), and there shall be other officials of the services of Government of Nepal in the
center as may be necessary.
38. Functions, Duties and Powers of the National Vigilance Center: The  National Vigilance Center established under Sub-Section (1) of Section 37 shall have following functions, duties and powers:-
(a) To collect information on whether or not the functions to be carried out by the Ministries, Departments, offices of Government of Nepal and public institution are being regularly carried out;
(b) To alert Ministries, Departments, Offices of Government of Nepal, or public institution in case the functions to be carried out by them are not found to have been carried out;
(c) To monitor the statement of property and income given by persons holding a public post as per the prevailing laws;
(d) To make necessary provision for regular surveillance, surprise check and investigation in corruption prone places or works;
(e) To make necessary recommendations to Government of Nepal with
regard to the policies, strategies and reformation on laws to be adopted for
corruption control;
(f) To make provision of a complaint box in the Ministries of Government of
Nepal, Departments, Offices or public institution;
(g) To provide any suggestion or direction to the concerned bodies with
(h) To collect necessary description or information concerning
corruption from the body or authority working for investigation into
offences of corruption and to maintain them updated;
(i) To forward any information concerning corruption received to it to
the concerned bodies;
(j) To carry out or cause to carry out other incidental functions with
regard to corruption control;
(k) To carry out or cause to carry out other functions prescribed by the
Government of Nepal

Chapter – 5 Miscellaneous

Chapter – 5 Miscellaneous
39. Statement May be Taken or Transaction or Account May be Freeze:

(1) Notwithstanding anything contained in the existing law, if it appears from any source during the course of investigation into offences of corruption that there has been financial transaction or operation of an account in the name of any person with any bank or financial institution within the country or in any foreign country, the investigating authority may order to freeze such transaction or account. The concerned bank or financial institute shall freeze such transaction or account in accordance with the order of the investigating authority.
Provided that in case such transaction or account to be freeze is with a bank or financial institution in a foreign country, the investigation authority may cause to freeze the operation of transaction or account through the diplomatic channel.
(2) The investigating authority may impose a fine of fifty thousand rupees in maximum to the chief of the concerned bank or financial institution located in Nepal not freezing transactions or accounts pursuant to Sub-section (1).
(3) The investigation authority may, if it deems fit in the course of investigation, according to the need, ask for the statement of property belonging to persons holding an office of public responsibility or freeze such
property.
40. Banning to Issue or Freezing Passport: Notwithstanding anything contained in the prevailing laws, the investigating authority may, on the basis of the gravity of the offence, the condition, circumstances in which the accused committed the offence, degree of the offence and the pnishment in case of conviction of the offence, issue an order to the concerned bodies for not issuing passport to any accused or for withholding it if it has been already
issued.
41. Restriction to Leave Places: In case an action has been taken against any person under this Act, the investigating authority may, on the basis of the gravity of the offence, the condition and circumstances in which the accused
committed the offence, the degree of the offence and the punishment in case of conviction of the offence, issue an order to any accused not to leave any place or not to go any particular place without the approval of the investigating
authority.
42. Provision Relating to Service of Summons: (1) Notwithstanding anything contained in the existing law, while servicing summon in the name of a foreigner in any offence under this Act, the summon may be served to the
office or representative of such person within of Nepal, if any, and service of summon in that manner shall be deemed to have duly made.
(2) In case there is no office or representative referred to in sub-Section
(1), the summon shall be served to the main place of transaction, or to the address of such person where he resides permanently, or to the address of correspondence given by such person in connection with his business transaction through the means of telex, fax or any other means of telecommunication in written form or through registered post, and the summons served in any of such manners shall be deemed to have been duly made.
(3) Notwithstanding anything contained in Sub-sections (1) or (2), this Section shall not be deemed to have hindered the service of summons according to the provisions of a treaty in case there is a separate provision for
service of summons in the name of persons living in a foreign country in any treaty to which Government of Nepal or of Nepal is a party.
43. Publication of Notice: Notwithstanding anything contained in the prevailing laws, in case it has been reported that no notice could be served while sending a notice or servicing a summon in the name of any person in accordance with this Act or other prevailing laws for not finding the address of such person or for any other reasons, a public notice shall be published least for twice in a national level newspaper (in case of a foreigner in a
English Daily) having given him/her a time limit of 30 days and having given short description as to whether the investigation is underway or the case is already filed at the authority hearing the case; and in case a notice
has been published in such a way, the notice shall be or summon deemed to have been duly delivered or served to such person notwithstanding anything contained in the prevailing laws.
44. Obligations of government bodies and public institutions: The chief of a government body and public institution shall, in case any information has been received that corruption has been committed at his office or any other office under him, immediately take the related documents or file under his custody and keep it safe, and upon having
inquired with the persons and officials related to such subject and upon having known the reality, if there appears any reason of commission of corruption, he shall forward such documents to the concerned body for
investigation and inquiry.
45. Case May be Filed against Retired Person: Nothing in this Act shall be deemed to have prevented filling of a case against a retired public servant in connection with commission of corruption having embezzled
or causing loss to government or public property or the property belonging to an organization owned by Government of Nepal even after such public servant is retired from the service.
46. No Hindrance to Initiate Proceedings and Finalize Case:
Notwithstanding anything contained in the prevailing laws, there shall be no hindrance to initiate proceedings and finalize a case even if the accused or defendant dies before or after a case under this Act is filed.
47. Confiscation of Property: In case it is proved that any person has earned property having committed any act which is deemed to have committed corruption under this Act or other prevailing laws and has
kept such property and the property accrued therefrom in his/her own name or in the name of anybody else such property shall be confiscated.
Provided that, in case the ownership of such property is transferred to any person and in case the price of such a property is quoted, the transaction involving such amount shall be treated as a simple loan deed.
48. Order to Freeze Property of a Foreigner: (1) In case any foreigner who does not appear before the investigating authority in pursuance of a notice sent by the investigating authority or summon served pursuant to
Section 42 is having any property, entitlement, interest or concern within of Nepal, the investigating authority may order to maintain a status quo with regard to them or not to allow to take such property,
entitlement, interest or concern outside of Nepal unless and until such a person appears before the investigating authority, and it shall be the duty of all concerned to abide by such an order.
(2) The investigating authority may impose a fine of one thousand rupees in maximum to the person who does not abide by the order made pursuant to Sub- section (1) and in case any type of loss or damage is caused to Government of Nepal or a public institution because  of non-observance of such an order, such loss shall also be recoved from
him/her.
49. Punishment for Filing False Complaint: In case it is found that any person has filed a false complaint against any public servant or person without having any reasonable ground for filing a complaint and with the
intention of causing any type of loss, damage or harassment, the investigating authority may impose a fine not exceeding five thousand rupees on him.
50. Provision Relating to Statement of Property: (1) Whoever joins a public office shall, within sixty days from the date of joining the public office, and whoever is engaged in a public office on the date of commencement of this Section shall, within sixty days from the date of commencement of this Act, and thereafter within sixty days from the
date of completion of each fiscal year, submit the up dated statement of property in his/her name or in the name of his/her family members along with the sources or evidence thereof to the body or authority
prescribed by Government of Nepal having published a notification in the Nepal Gazette.
(2) In case the person assuming a public office who is unable to submit the statement of property within the time limit referred to in Sub- section (1) makes a request for extension of the time limit having stated
therein the reasons for his/her not being able to submit such statement, the concerned body or authority may extend the time limit for a period of thirty days in maximum.
(3) The person assuming a public office who does not submit the statement of property within the time limit extended pursuant to Sub- section (2) shall be liable to a fine of five thousand rupees and the
concerned body or official may investigate having suspected that there is illegal property in his/her and his/her family member’s names.
(4) The statement of property submitted under this section Shall be confidential.
Provided that, if statement of property is required in connection with investigation and inquiries under this Act, such statement may be made available to the concerned authority.
51. Punishment to Persons Causing Hindrance and Obstruction: The authority hearing the case may, on the basis of the report of investigating authority, impose a punishment of imprisonment of a term of six months in
maximum or a fine up to five thousand rupees in maximum or both to a person who causes hindrance or obstruction in actions relating to investigation and inquiries under this Act.
52. Confidentiality of Information: (1) No notice, information or evidence  received to, collected by, the investigating authority in connection with investigation and inquiry in an offence of corruption shall be publicly notified
before filing of case.
(2) Notwithstanding anything contained in Sub-section (1), the investigating authority may publicize particulars of inquiry and investigation of any matter of public importance which it deems fit as may be necessary.
53. Departmental Action to Employees Involved in Inquiries and Investigation: In connection with implementation of this Act, in case it is proved that the investigation officer or other employee engaged in investigation
and inquiries has committed any act knowingly with the intention of causing harassment to any person, departmental action shall be taken against such employees.
54. To be subjected to Imprisonment: Notwithstanding anything contained in the prevailing laws, the person having been punished by a court with a term of imprisonment shall be subjected only to imprisonment.
55. Remission in the Claim of Punishment: The investigating authority may give complete or partial remission in the claim of punishment with regard to the accused who assists in the process of investigation carried out under this
Act having him/herself presented as a witness on its behalf.
Provided that in case other evidences do not prove his assistance or in case he becomes hostile later on, the case may be filed against him again notwithstanding anything contained in this Act or in other prevailing laws.
56. No Action to be Taken: Notwithstanding anything contained in the prevailing laws, no action shall be taken against a public servant for disclosing confidentiality under the law relating to the terms and condition of
his/her service who gives information for taking legal action in case of corruption committed or going to be committed or for preventing to be committed.

57. Delegation of Power: (1) The investigating authority may, by publication of a notification in the Nepal Gazette, delegate its all or any power conferred on it by this Act to any of the Government of Nepal’s gazetted level officers.
(2) While delegating power pursuant to Sub-section (1), the territorial jurisdiction for the powers to be accountable by such officer shall be as prescribed in such notification.
(3) The officer exercising the power conferred on him under sub- Section (1) shall, for that purpose, be responsible to the investigating authority.
58. Provision Relating to Rewards: The investigating authority may give an appropriate reward to the person assisting it in connection with inquires, investigation or collection of evidences in the offences punishable under this Act.
59. Special Provisions Relating to Cases of Corruption: Notwithstanding anything contained in the prevailing laws, it shall be as follows in the following matters with regard to the cases filed under this Act:-
(a) In case any public servant or any other person has, while committing or in connection with committing an act that is deemed to be an offence under other prevailing laws, there shall be no hindrance to file separate case in
accordance with other prevailing laws.
(b) In case there has been adverse impact caused on the rights, property or interests of any person while committing or in connection with committing an act that is deemed to be an offence under this Act by a public servant or
any other person, there shall be no hindrance for such person to file a
separate case.
(c) In cases where a case has been filed against a person for an offence under this Act and it appears later on, after having examined the  evidence, that the case must be filed against other person as well, there
shall be no hindrance to file a separate charge sheet against such person.
(d) Nothing shall be deemed to prevent filling of a separate case against any public servant or person for offenses to be liable under this Act, even if the separate case has been already filed against such person in order to
recover loss and damages made by such person to Government of Nepal or public institution illegally;
(e) In case, where a case has been filed under this Act against any public servant or other person, there shall be no hindrance to file a case under this Act or the case filed shall not be dismissed merely for the reason that
there is a legal provision of recovery of the loss caused to Government of Nepal or a public institution from such public servant or other person. (f) No cases filed under this Act shall be withdrawn or compromised.
60. Informer and his/her details to be kept confidential: The name or address of an informer providing information that an offence under this Act has been committed or going to be committed shall be kept confidential in case
he/she so requests.
61. Unclaimed goods to be entitled to Government of Nepal: (1) In case no owner of the goods related to the offence punishable under this Act is traced, the investigating authority shall publish a public notice requiring the claimant, if
any, of the goods so seized to claim the goods, within a time limit of thirty five days.
(2) In case, no claim is made within the time limit referred to in sub- section (1) or even if the claim is made but in absence of proof the claim is not tenable, such goods shall be the property of Government of Nepal having treated
such goods as unclaimed goods.
62. Goods may be sold: (1) In case it appears that any goods seized in connection with an offence punishable under this Act would be damaged or broken for storing for a long time due to rust or for any other reason or would be rotten or damaged or price of such goods would go down for being old or would be useless or it could not be stored or maintained for lack of space, such goods may be sold having completed the process thereof in accordance with the
prevailing laws.
(2) The amount received from the sale pursuant to Sub-section
(1) shall be deposited to the deposit accounts. In case it has been decided that  such goods has to be given to the concerned owner, he shall be entitled only to the amount received from the sale.
63. No Hindrance to Exercise Powers: Nothing in this Act shall be deemed to have hindered any authority or officer to exercise powers under other prevailing laws with regard to investigation, inquires, other actions and filing
or cases relating to corruption.
64. Power to Frame Rules: Government of Nepal may frame necessary Rules for implementing the objectives of this Act.

65. Amendment, Repeal and Saving:

(1) The following Sections of the Revenue (Investigation and Control) Act, 2052 have been repealed,-
(a) Clause (c) of Section 2;
(b) Sub-section (2) of Section 6;
(c) The terms “or employee” appearing in sub-Section (4) of Section 9;
(d) Sub-section (2) of Section 18;
(e) Sub-section (2) of Section 21;
(f) Sub-section (2) of Section 23;
(g) The terms “or corruption” frequently used in place to place;
(h) Section 5, chapter 4 and Section 25.
(2) The Prevention of Corruption Act, 2017 has been repealed.
(3) All actions taken and proceedings initiated under the Prevention of Corruption Act, 2017 shall be deemed to have been taken or initiated under this Act.

An Act to make provisions relating to Patan Academy of Health Sciences

Preamble: Whereas, it is expedient to establish and operate the Patan Academy of Health Sciences to conduct high standard study and research activities, to produce skilled human resource necessary for the Country in the Health Sciences area and to provide health services to the general public by strengthening health service; Now, therefore, be it enacted by the Legislature-Parliament.

Chapter 1 Preliminary

1. Short Title and Commencement:
(1) This Act may be called as “Patan Academy of Health Sciences Act, 2064 (2008)”. (2) This Act shall come into force immediately.

2. Definitions: Unless the subject or the context otherwise requires, in this Act: –
(a) “Academy” means the Patan Academy of Health Sciences established pursuant to Section 3.
(b) “Senate” means Senate of the Academy as referred to in Section 7.
(c) “Academic Council” means the Academic Council as referred to in Section 10.
(d) “Executive Council” means the Executive Council as referred to in Section 11.
(e) “Service Commission” means the Service Commission as referred to in Section 13.
(f) “Educational Institution” means Educational Institution as referred to in Section 15.
(g) “Hospital” means the Hospital established pursuant to Section 16.
(h) “Hospital Management Committee” means Hospital Management Committee established pursuant to Section 17.
(i) “Chancellor” means the Chancellor as referred to in Section 18.
(j) “Pro-Chancellor” means the Pro-Chancellor as referred to in Section 19.
(k) “Vice Chancellor” means the Vice Chancellor as referred to in Section 20.
(l) “Rector” means the Rector as referred to in Section 21.
(m) “Registrar” means the Registrar as referred to in Section 22.
(n) “Dean” means the Dean as referred to in Section 23.
(o) “Director” means the Director as referred to in Section 24.
(p) “Teacher” means a person appointed for providing education or research in the Academy.
(q) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act.

Chapter 2 Establishment, Structure and Functions, Duties and Powers of the Academy

3. Establishment of the Academy:
(1) The Patan Academy of Health Sciences is, hereby, established to conduct study, teaching and research on the area of Health Sciences.
(2) The Central Office of the Academy shall be located in the Kathmandu valley.
(3) The Academy shall be known as Patan Academy of Health Sciences in English language. 4. Academy to be Autonomous Corporate Body:
(1) The Academy shall be an autonomous corporate body with perceptual succession.
(2) The Academy shall have a separate seal of its own for all of its business.
(3) The Academy may, like an individual, acquire, use, sell or otherwise dispose of movable and immovable property.
(4) The Academy may, like an individual, sue and may be sued in the same name.

5. Structure of the Academy: The organization of the Academy shall be as follows and their collective form shall be the structure of the Academy:
(a) Senate,
(b) Academic Council,
(c) Executive Council,
(d) Service Commission,
(e) Education Council,
(f) Faculty,
(g) Research Centre,
(h) Educational Institution,
(i) Hospital,
(j) Other bodies as prescribed.

6. Functions, Duties and Powers of the Academy: (1) The Academy shall have following Functions, Duties and Powers,-
(a) To carry out study, teaching, training and research in the various subjects of health,
(b) To provide qualitative and accessible health services,
(c) To conclude an agreement with National and International University, Educational Institution or Hospital for the operation of study, teaching, training and research in the various subjects of health,
(d) To produce skilled human resource necessary for the qualitative health services,
(e) To maintain co-ordination with National and International University, Educational Institution or Hospital for the strengthening various programmes to be operated by the Academy and upgrading quality of such programmes,
(f) To maintain relation, extent and upgrade with National and International University, Academy and International Institution related to Health and exchange mutual assistance,
(g) To organise or cause to organise workshop, conference and seminar in the various subjects of health,
(h) To publish or cause to publish various book relating to Health, (i) To carry out or cause to carry out other functions as prescribed.

(2) The functions, duties and powers of the Academy shall be exercised and abided by through the organisation of the Academy.

Chapter 3 Constitution, Functions, Duties and Powers of the Senate

7. Constitution of the Senate: (1) There shall be a Senate to function as the supreme body of the Academy.

(2) The constitution of the Senate shall be as follows: –
(a) Chancellor Chairperson
(b) Pro-Chancellor ViceChairperson (c) 1 ……………………
(d) Member, National Planning Commission (Looking after Health sector) Member
(e) Vice-Chancellor Member
(f) Two person from amongst Vice-Chancellors of Universities and Academies which provides higher education related to Health Sciences as nominated by the Senate on the recommendation of Executive Council Member
(g) Secretary, Ministry of Health and Population Member
(h) Secretary, Ministry of Finance Member
(i) Secretary, Ministry of Education and Sports Member
(j) Rector Member
(k) One person from amongst Deans nominated by the Senate Member
(l) Director Member
(m) President, Lalitpur District Development Committee Member
(n) Mayor, Lalitpur Sub-Metropolitan City Member
(o) Two persons from amongst Chief of the Hospitals of Nepal which concluded an agreement with Academy nominated by the Senate on the recommendation of Executive Council Member
(p) Two persons including at least a women from amongst Teachers nominated by the Executive Council on the recommendation Academic Council Member
(q) One person from amongst Chief of the Educational Institutions nominated by the Senate on the recommendation of Executive Council
(r) Chairperson, Nepal Health Research Council Member
(s) Chairperson, Nepal Medical Council Member
(t) Four persons from amongst Dalit, Aadibasi/janjati, Medhesi, backward group including at least a female nominated by the Senate on the recommendation of Executive Council Member
(u) One person from amongst donors nominated by the Senate on the recommendation of Executive Council Member
(v) One person from amongst the working employees in the Academy nominated by the Senate Member
(w) Registrar MemberSecretary

(3) The tenure of office of the nominated members shall be Three years.
(4) In case the office of the nominated members falls vacant for any reason whatsoever, another person shall be nominated for the remaining term having fulfilled same the process.
(5) The procedures relating to the meetings of the Senate shall be as prescribed.

8. Functions, Duties and Powers of the Senate: The functions, duties and powers of the Senate shall be as follows:
(a) To approve policies, plans and programmes of the Academy,
(b) To approve annual budget of the Academy,
(c) To approve Rules of the Academy,
(d) To award scholarships, degrees, certificates, medal and prize to be conferred by the Academy,
(e) To award honorary degrees as prescribed,
(f) To guide and provide necessary direction to various bodies under the Academy,
(g) To submit necessary recommendation to the Government of Nepal while formulating National Health and Educational Policy, (h) To approve annual report of the Academy,
(i) To discuss on audit report and to approve it,
(j) To manage or cause to manage relating to establishment of Educational Institutions as per necessary,
(k) To perform other functions as may be prescribed.

Chapter 4 Constitution, Functions, Duties and Powers of Academic Council

9. Constitution of Academic Council:

(1) There shall be an Academic Council to manage and regulate the educational, academic and research functions of the Academy.

(2) The Academic Council shall be constituted as follows:

(a) Rector -Chairperson

(b) Five persons from amongst Chairperson of various Subject Committees of the Academy nominated by the Senate on the recommendation of Executive Council -Member

(c) Director -Member

(d) Heads of the Curriculum and Examination Institution of the Academy -Member

(e) Two persons including at least One women from amongst Teachers nominated by the Senate on the recommendation of Executive Council -Member

(f) Two persons including at least One woman from amongst the persons who have made substantial contribution in the field of Health nominated by the Senate on the recommendation of Executive Council – Member

(g) The Dean designated by the ViceChancellor from amongst the Deans – Member Secretary

(3) The tenure of office of the nominated members shall be Three years.
(4) In case the office of a nominated member falls vacant for any reason whatsoever, another person shall be nominated for the remaining term having fulfilled the same process.
(5) Procedures relating to the meetings of the Academic Council shall be as prescribed.

10. Functions, Duties and Powers of the Academic Council: The functions, duties and powers of the Academic Council shall be as follows:–
(a) To formulate necessary policies, plans and programmes to systematise and regularise the educational, academic and research functions and submit for the approval in the Senate,
(b) To operate or cause to operate study and research programmes to award education in different subjects and levels relating to Health Sciences,
(c) To determine the qualification of the Teachers necessary for the Academy,
(d) To approve curriculum and set the standard of study, research, training and orientation to be operated by the Academy,
(e) To select the students,
(f) To fix the standards of examination,
(g) To recommend to Senate for degrees to the students who get success in the study programme conducted by the Academy,
(h) To recommend to Senate for honorary degrees, scholarship, medal and prize to be conferred by the Academy,
(i) To prepare standard text books,
(j) To evaluate study, research, training and orientation programme to be operated by the Academy,
(k) To determine the fees to be charged for study, training and research,
(l) To implement and execute the decision of Senate relating to Academic Council and to monitor,
(m) To perform such other functions as prescribed.

Chapter 5 Constitution, Functions, Duties and Powers of Executive Council

11. Constitution of Executive Council:
(1) There shall be an Executive Council to act as the executive body of the Academy.
(2) The Executive Council shall be constituted as follows:
(a) Vice-Chancellor Chairperson
(b)Rector Member
(c) One person from amongst the Deans Member
(d) One person from amongst the Chiefs of the Educational Institutions who is a member of Senate Member
(e) Director Member
(f) One person from amongst the Teachers Member
(g) Registrar MemberSecretary

(3) The members as referred to in Clauses (c), (d) and (f) of Sub-section (2) shall be nominated by the Pro-chancellor on the recommendation of the Vice-Chancellor.
(4) The tenure of office of the nominated members as referred to in Sub-section (2) shall be Three years.
(5) Procedures relating to the meetings of the Executive Council shall be as prescribed.

12. Functions, Duties and Powers of the Executive Council: The functions, duties and powers of the Executive Council shall be as follows:
(a) To execute or cause to execute the decisions and directives of the Senate,
(b) To prepare draft of the Rules relating to the Academy and submit them to the Senate for approval,
(c) To prepare policies, plans, annual programmes, progress report, annual budget, audit report and other resolutions and introduce them to the Senate for approval,

(d) To evaluate and monitor the functions carried out by the bodies under the Academy and to direct such bodies as per necessity, (e) To operate, look after and protect, sell, or lease or contract the fund and movable and immovable property of the Academy subject to the policy, guidelines of the Senate, Provided that, prior approval of the Government of Nepal shall be taken to sell the immovable property which was be received from the Government of Nepal.
(f) To appoint and promote teachers and employees necessary for the Academy on the recommendation of the Service Commission,
(g) To accept financial and other assistance to the Academy,
(h) To carry out other functions as prescribed.

Act Number 33 of the year,2063 paush 30 (2007/2008)

An Act Made to Amend and Consolidate Laws Relating to Securities Preamble: Whereas, it is expedient to update the laws relating to securities by amending and consolidating such laws in order to regulate and manage the activities of the securities markets and persons involved in the business of dealing in securities by regulating the issuance, purchase, sale and exchange of securities for the purpose of protecting the interests of investors in securities, by developing the capital market to mobilize necessary capital for the economic development of the country; Now, therefore, be it enacted by the House of Representatives in the First Year of the issuance of the Proclamation of the House of Representatives, 2006.

Chapter-1 Preliminary

1. Short title and commencement:

(1) This Act may be called “Securities Act, 2063”. (2) This Act shall be deemed to have been commenced from 6 Ashoj 2063 (September 22, 2006). 2. Definitions: Unless the subject or the context otherwise requires, in this Act,-

(a) “Chairperson” means the Chairperson of the Board appointed under Section 7.

(b) “License” means the license issued by the Board under this Act to operate the stock exchange or securities business.

(c) “Company” means a company incorporated under the company laws force.

(d) “Depository means a bank or financial institution that makes agreement with the scheme manager and thereby undertakes the responsibility of providing custodial services such as safe holding and operating the assets of any collective investment scheme.

(e) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act.

(f) “Securities” means any shares, stocks, bonds, debentures, debenture stocks or collective investment scheme certificate issued by a body corporate or treasury bonds, saving bonds or bonds issued by the Government of Nepal or by a body corporate against the guarantee of the of the Government of Nepal, and this term also includes such other securities as may be specified by the Board to be transacted or transferable through the stock exchange or the instrument to purchase, sell or exchange such securities.

(g) ” Securities transactions ” means the issue, purchase, sale or exchange of securities and other acts pertaining thereto;

(h) “Registration of securities” means the registration of securities by a body corporate with the Board pursuant to Section 27.

(i) “Stock exchange” means a market, place or facility performing the purchase, sale or exchange of securities on regular basis by bringing together to the purchasers and sellers of securities.

(j) ” Securities business” means transactions in securities to be carried on by a company or body licensed to carry on the securities business under this Act.

(k) “Securities business person” means a company or body licensed under Section 58 to carry on securities business.

(l) “Issuance” means an offer made by a body corporate to raise capital and acts related there to, and this term also includes the issuance of securities to promoters.

(m) “Private placement” means an act to make an offer by a letter, dispatch or any electronic communication media for the sale of securities to a maximum of fifty investors.

(n) “Board” means the Nepal Securities Board established under Section-3.

(o) “Exchange” means an act concerning purchase, sale or transfer of securities already issued pursuant to this Act.

(p) “Prospectus” means a prospectus required to be published by a body corporate pursuant to Section 30 prior to he public issue of securities.

(q) “Scheme manager” means a body corporate managing a collective investment scheme of participants with an object to provide an efficient investment service pursuant to this Act.

(r) “Investment fund” means a fund created out of amounts deposited by participants in a collective investment scheme in accordance with a contract as has been taken in its custody by a scheme manager with object to provide an efficient investment service or assets related with such a fund, and this term also includes a fund which the scheme manager has taken in its responsibility in accordance with this Act or additional assets created from management of investment of assets and amount accumulated by way of considers anion.

(s) “Participant” means a person or body that makes investment in a collective investment scheme operated by a scheme manager pursuant to this Act.

(t) “Member” means a member of the Board, and this term also includes the Chairperson.

(u) “Body corporate” means a body corporate established under prevailing which has the capacity of public issuance of securities . Provided that, it shall not include a corporative bodys.

(v) “Public issue” means an offer made by a body corporate before the general public for the subscription of its securities by publishing a prospectus.

(w) Collective investment scheme” means such an investment fund, unit trust or similar other participatory fund management program as specified by the Board, from time to time as may be operated by a scheme manager in accordance with this Act in order to distribute returns to, the participants of the concerned program proportionately, accrued from the efficient investment service on saving investment amount which has been undertaken in custody of the manager and so mobilized that various persons or bodies that have participation in it.

(x) “Enlisting” means the enlisting of securities on a stock exchange for the purposes of purchasing, selling or exchanging securities through the stock exchange;

(y) “Right issue” means an offer made to the existing shareholder or any person nominated by such shareholder for the subscription of any securities issued by a body corporate.

Chapter-2 Provisions Relating to Board

3. Establishment of Board:
(1) There shall be established a Board by the name of Nepal Securities Board in order to regulate and manage the activities of the securities markets and persons involved in securities business by regulating the issue, purchase, sale and exchange of securities in order to develop capital market and protect the interests of investors in securities.

(2) The Board to be established under Sub-section (1) shall consist of the members as follows:-
(a) A person appointed by the Government of Nepal -Chairperson
(b) Joint Secretary, Ministry of Finance -Member
(c) Joint Secretary, Ministry of Law, Justice and Parliamentary Affairs -Member
(d) Representative, Nepal Rastra Bank -Member
(e) Representative, Institute of Chartered Accountants of Nepal -Member
(f) Representative, Federation of Nepalese Chambers of Commerce and Industries -Member
(g) A person nominated by the Government of Nepal from amongst the experts who have obtained at least master’s degree in economics, management, finance, commerce or law from a recognized university and gained at least seven years of experience in stock exchange,management, capital market development, finance and economic sector -Member

(3) The concerned organization shall, in nominating its representative pursuant to Clauses (e) and (f) of Sub-section (2), nominate a person who has obtained at least bachelor’s degree and gained at least seven years of experience in accounts, industry, commerce, finance, banking, economics or law matters.
(4) The tenure of office of the member nominated pursuant to clause (g) of Sub-section (2) shall be three years.
(5) No act or proceeding of the Board shall be affected merely on the reason of any vacancy in office of any member.
(6) An officer employee designated by the Board shall act as the Secretary of the Board.
(7) If the Board thinks it necessary, it may invite any native or foreign expert, adviser to attend its meeting as an observer.
(8) The central office of the Board shall be situated in Kathmandu Valley; and the Board may, as required, open its branch or contact office within or outside of Nepal.

4. Board to be an autonomous and body corporate: (1) The Board shall be an autonomous body corporate having perpetual succession.
(2) The Board shall have a separate seal of its own for all of its acts and proceedings.
(3) The Board may, like an individual, acquire, use, purchase, sell, or otherwise deal with, any movable or immovable property. (4) The Board may, like an individual, sue by its own name and be also sued in the same name.

5. Functions, duties and powers of the Board: The functions, duties and powers of the Board shall be as follows:-
(a) To offer an advice, as per necessity, to the Government of Nepal on matters incidental to the development of capital market,
(b) To register the securities of any corporate body established with the authority to make a public issuance of its securities,
(c) To regulate and systematize the issue, transfer, sale and exchange of registered securities,
(d) To grant permission to any corporate body, which is desirous of operating a stock exchange, to operate the stock exchange subject to this Act or the Rules and bye -laws framed under this Act,
(e) To regulate and monitor the activities of the stock exchange;
(f) To inspect as to whether or not any stock exchange is executing its activities in accordance with this Act or the Rules and Bye-laws framed under this Act, and to suspend or revoke the license of such a stock exchange, if it is found that the same has not been done,
(g) To issue a license to companies or institutions, which are desirous of carrying on the securities business subject to this Act or the Rules and Bye-laws framed under this Act,

(h) To regulate and monitor the activities of securities business person,
(i) To classify securities business persons and fix their standards according to their functions and capability by fulfilling such procedures as prescribed,
(j) To grant a permission to operate collective investment schemes and investment fund programs, and to regulate and monitor the same,
(k) To approve Bye-laws of stock exchanges and those bodies which are related with securities business and engaged in securities transactions, an d to issue orders to stock exchanges and those bodies which are related with securities business and engaged in securities transactions to make necessary amendment in their Bye-laws with a view to making necessary provisions concerning the development of capital market and protecting the interests of investors in securities,
(l) To systematize the clearance of accounts related to securities transactions,
(m) To supervise whether or not security business persons have maintained such conduct as prescribed in this Act or the Rules, Bye-laws and Directives framed under this Act, while carrying on securities business, and suspend or revoke the license to carry on securities business where any securities business person is not found to have maintained such a conduct,
(n) To make or cause to be made, such arrangements as may be necessary to regulate the volume of securities and the mode of securities transactions for the promotion, development and healthy operation of stock exchanges,
(o) To make such arrangements as may be necessary to prevent insider trading or any other offense relating to securities transactions as referred to in Chapter-9 for the protection of the interests of investors in securities,
(p) To review, or cause to be reviewed, financial statements submitted by corporate bodies issuing securities and securities business person, sand give such directives to the concerned corporate bodies as it deems necessary in this connection,
(q) To regulate and make transparent the act of acquiring the ownership of a company there by gaining control over its
(r) To maintain coordination and exchange cooperation with the concerned agencies in order to supervise and regulate matters concerning securities or company affairs,
(s) To perform or cause to be performed such other functions as may be necessary in relation to securities and the development of capital market.

6. Meeting and decision of Board:
(1) The Chairperson shall call the meeting of the Board as per necessity. Such a meeting shall be held at least once a month.
(2) The meeting of the Board shall be held on such date, at such time and at such place as may be specified by the Chairperson.
(3) The meeting of the Board shall be presided over by the Chairperson and by a member chosen by the members from amongst themselves, in the absence of the Chairperson.
(4) Where at least two members request in writing to call a meeting of the Board, the Chairperson shall have to call a meeting of the Board within seven days from the date of receipt of such a notice.
(5) The Secretary of the Board shall provide the agenda to be discussed at the meeting to the members, along with the notice for the meeting.
(6) The presence of more than fifty percent of the total number of members of the Board shall be deemed to have been constituted a quorum for a meeting of the Board.
(7) A majority opinion shall prevail at the meeting of the Board and in the event of a tie; the person presiding over the meeting shall exercise the casting vote.
(8) There shall be maintained a separate minute book recording the names of members present at, matters discussed at and decisions made by each meeting of the Board, and such a book shall be signed by members present.
(9) The decisions made by the Board shall be authenticated by the Secretary of the Board and shall provide to all members.
(10) Other procedures relating to the meeting of the Board shall be as determined by the Board itself.

7. Appointment of Chairperson:
(1) The Government of Nepal shall, subject to Sub-section (2), appoint the Chairperson to act as the administrative chief of, and perform the day-to-day business of the Board.
(2) In making appointment to the office of Chairperson pursuant to Subsection (1), the Government of Nepal shall appoint to the office of Chairperson an appropriate person from amongst the renowned persons who have obtained at least master’s degree and gained at least seven years of experience in the field of stock exchange management, capital market development, economics, finance, commerce, management or law.
(3) There shall be formed a committee under the convenorship of the member of National Planning Commission responsible for the concerned sector and consisting of the Secretary at the Ministry of Finance and an expert in the filed of securities as its members, for recommending a name for the purpose of appointment of Chairperson pursuant to Sub-section (2); and the appointment of Chairperson shall be made pursuant to this Section on recommendation of this committee.
(4) The committee referred to in Sub-section (3) shall, in recommending a name, recommend the names of at least three persons who have possessed the qualification pursuant to this Act.
(5) In recommending a name for the Chairperson pursuant to Subsections (3) and (4), the committee shall determine its Rules of procedures on its own.
(6) The term of office of Chairperson shall be of four years, and he or she may be reappointed for a maximum period of four years.
(7) Notwithstanding anything contained elsewhere in this Section, where the Chairperson commits any act or action contrary to the interests of the Board or the development of capital market and causes any loss and damage to the Board, the Government of Nepal may form an inquiry committee as prescribed and, on recommendation of such a committee, remove him or her from the office of the Chairperson. Provided that prior to so removing from his or her office, the Chairperson shall be provided with appropriate opportunity to defend himself or herself.

8. Functions, duties and powers of the Chairperson: (1) The functions, duties and powers of the Chairperson shall be as follows: (a) To perform such functions as may be necessary for the protection of the interests of investors in securities for the development of capital market,
(b) To regulate and monitor, or cause to be regulated and monitored, stock exchanges and transactions of securities business persons in order to make transactions in securities strengthened, effective and reliable,
(c) To act as the executive chief of the Board,
(d) To submit such long-term and short-term plans and policies as be necessary to be adopted by the Board for the management of stock exchanges and development of capital market to the Board for its approval,
(e) To call or cause to be called the meeting of the Board and preside over the same,
(f) To prepare annual programs and budget of the Board and submit the same to the Board for its approval,
(g) To implement or cause to be implemented the decisions made by the Board,
(h) To inspect and supervise day-to-day business of the Board and perform the functions in accordance with the objectives of the Board,
(i) To appoint the advisers and employees required for the Board as prescribed,
(j) To perform or cause to be performed such other functions as may be entrusted to him or her by the Board (2) The functions, duties and powers of the Chairperson, other than those referred to in Sub-section (1) shall be as prescribed.

9. Remuneration, meeting allowance and other facilities of Chairperson and member: The remuneration, meeting allowance and facility entitled to, by the Chairperson and member and daily and traveling allowance entitled to, by the Chairperson and member while making travel within or outside Nepal shall be as prescribed.

10. Qualification of Chairperson and member: In order to be appointed as a Chairperson or a member, as the case may be, a person shall have to possess the qualification as follows:- (a) One who is a citizen of Nepal,
(b) One who has maintained high moral character,
(c) One who has gained at least seven years of professional experience in the field of stock exchange management, capital market development, economics, finance, commerce, management or law, and
(d) One who is not disqualified under Section 11.

11. Disqualification of Chairperson and member: Any of the following persons shall not be eligible to be appointed to the office of Chairperson or member, as the case may be:-

(a) One who is an officer-bearer of a political party,
(b) A person involved in securities business,
(c) One who is adjudicated as an insolvent,
(d) One who is insane,
(e) One who has been convicted by the court of an offense involving moral turpitude.

12. Circumstances on which a Chairperson and a member may be removed from office: (1) Where there occurs a circumstance for removal of the Chairperson or the member referred to in subsection (2), the Government of Nepal shall remove the Chairperson and member, as the case may be. Provided that prior to making such a removal, the Government of Nepal shall not deprive the concerned person of a reasonable opportunity to defend him/herself.

(2) The Chairperson and the member, as the case may be, shall be removed from the office in any of the following circumstances:- (a) If one is disqualified to be a Chairperson and a member, as the case may be, pursuant to Section 11,
(b) If one commits any act contrary to the interest of investors in securities or any act that may cause loss or damage to the development of capital market,
(c) If one suffers from lack of competence to implement, or cause to be implemented, such functions required to be performed by the Board to attain the objectives of the Board pursuant to this Act or the Rules framed under this Act,
(d) If one has been held disqualified to carry on any occupation or business by the reason of misconduct and his or her certificate has been revoked or he or she has thus been restricted to carry on a business,
(e) If one remains absent from three consecutive meetings of the Board without giving a notice.

13. Resignation of Chairperson and member: The Chairperson or the member, as the case may be, may relieve of his or her office by tendering a resignation in writing to the Government of Nepal.

14. Fulfillment of vacancy: If the office of the Chairperson or any member falls vacant prior to the completion of his/her tenure of office, the Government of Nepal shall appoint any person to that vacancy for the remaining period of tenure by fulfilling the procedures as referred to in this Act.

15. Proceeding not to be invalid: No act or proceeding of the Board shall be invalid merely by the reason of any defect in the appointment of the Chairperson or member, as the case may be, or the formation of the Board or vacancy in office of the Chairperson or any member.

16. Powers to form committee or sub-committee:

(1) The Board may, form any committee or sub-committee, as per necessity, for the operation of its business. Such a member as specified by the Board shall be the coordinator of the committee or sub-committee, as the case may be, so formed. (2) The functions, duties, powers, terms of reference, meeting allowance and procedures of the committee or subcommittee, as the case may be, formed pursuant to Sub-section (1) shall be as prescribed by the Board.

17. Delegation of powers: (1) The Board may, as per necessity, delegate any of the powers conferred to it to the Chairperson, any member or any committee or sub-committee, as the case may be, formed pursuant to Section 16.

(2) The Chairperson may, as per necessity, delegate any of the powers conferred to him or her to any member, any committee or sub-committee, as the case may be, formed pursuant to Section 16 or any employee of the Board.

18. Requirement of disclosure in regard to conflict of interest: Where any proposal in which any member has direct or indirect personal interest is to be discussed at the meeting of the Board, such a member shall give information as to such interest to the Board prior to the commencement of discussion on such matter. Except so permitted by the Board, such a member shall not be entitled to participate in the discussion and decision of such a matter and cast his or her vote thereon. Provided that the presence of such a member shall be valid in order to constitute a quorum of the meeting.

19. Provisions relating to accounts experts, advisors and employees: (1) The Board shall have such numbers of accounts experts, advisors and employees as may be necessary for the efficient operation of the functions of the Board.
(2) The appointment, remuneration, facilities and terms and conditions of service of the accounts experts, advisors and employees of the Board shall be as prescribed.

20. To take oath: The Chairperson, member, advisor and employee of the Board appointed for the first time in the Board shall, prior to assuming the functions of their office, take an oath of secrecy and honesty, as prescribed.

21. Secrecy: (1)No Chairperson, member, advisor, employee, auditor, agent or representative of the Board shall perform the following business:- (a) To supply or disclose any confidential information or notice obtained in the course of performing the duties of office to another person,
(b) To use such information or notice for personal benefits.

(2) Notwithstanding anything contained in Sub-section (1), any confidential information or notice may be disclosed on the following circumstances known to him or her in accordance with the procedures as specified by the Board:-
(a) Where the disclosure of such information or notice has been made in performing one’s duty publicly, rendering assistance to any law enforcing authority, carrying out an order given by a court or competent authority,
(b) Where such information or notice has been supplied to the external auditor of the Board in the course of performing one’s duties,
(c) Where such information or notice has been disclosed in the interests of the Board in the course of legal proceedings.

22. Fund of Board: (1) The Board shall have a separate fund of its own.

(2) The following amounts shall be credited to the fund as referred to in Sub-section (1):-

(a) Amounts received from the Government of Nepal,
(b) Amounts obtained as grants, assistance or loans from any native, foreign or international organizations, institutions or bodies, Provided that prior approval of the Government of Nepal shall be obtained in receiving such grants, assistance or loans.
(c) Amounts received by way of the license fees,
(d) Amounts received by way of the fees for registration of securities,
(e) Amounts received by way of the fees, charges, dues for transactions in securities,
(f) Amounts received by way of fines imposed by the Board,
(g) Amounts received from any other sources. (3) All amounts to be obtained to the fund of the Board pursuant to Sub-section (1) shall be credited to an account to be opened with any commercial bank within Nepal.

(4) All the expenditures t o be made on behalf of the Board shall be chargeable on the fund as referred to in Sub-section (1).

(5) In making expenditures pursuant to Sub-section (4), such expenditures shall be made subject to the budget approved by the Board for the incomes and expenditures to be made in each fiscal year.

(6) The operation of the fund of the Board shall be as prescribed.

23. Provision of revolving fund: (1) The Board may establish a revolving fund to manage its source of income and such amounts as specified by the Board shall be credited to that fund each year.
(2) The amounts of the revolving fund may be held in securities issued by the Government of Nepal or in such a periodic account as may be prescribed by the Board.
(3) Generally, no moneys held in the revolving fund, other than income earned out of the moneys in that fund, shall be spent.
(4) Provisions relating to the operation of the revolving fund shall be as prescribed.

24. Accounts of Board: (1) The Board shall have to maintain updated records of its activities.
(2) The Board shall have to maintain accounts of its incomes and expenditures, balance sheet and accounting details of each fiscal year in accordance with accounting system conforming to international practice no later than six months after the expiry of such a fiscal year.

25. Auditor and audit: (1) The accounts and books of the Board shall be audited by the Auditor General or any auditor designated by him. (2) While auditing the accounts and books of the Board, by the auditor appointed pursuant to Sub-section (1), such an auditor shall mention, inter alia, the following matters in his or her audit report:
(a) Whether the statements of incomes and expenditures truly reflect the incomes and expenditures of the Board in that fiscal year,
(b) Whether the balance sheet of that fiscal year reflects the true economic condition of the Board.

26. Annual report: (1) The Chairperson shall have to present an annual report of the activities of the Board before the Board no later than four months after the expiry of each fiscal year and also provide a copy of such a report to the Government of Nepal.
(2) The Chairperson shall in each year make public the annual report of the Board as referred to in Sub-section (1).

Chapter-3 Registration and Issuance of Securities

27. Registration of securities: (1) A body corporate shall have to register securities to be issued by it with the Board prior to their issuance.

(2) A body corporate shall have to make an application in the prescribed format, accompanied by its memorandum of association, articles of association, documents related with such securities, and the prescribed fees, to the Board for registering securities pursuant to Sub-section (1).

(3) Where an application is received pursuant to subsection (2), the Board shall make necessary inquiry into the matter and, if it considers appropriate to register such securities, register such securities in the register as prescribed, indicating the details of such securities and issue the securities registration certificate in the prescribed format to the concerned body corporate.

(4) Notwithstanding anything contained elsewhere in this Section, a body corporate which has already issued securities prior to the commencement of this Act shall register such securities with the Board in accordance with this Act within one year from the date of commencement of this Act.

28. Sale and transfer of securities: (1) Where a body corporate allots or sells securities after registering such securities, the body corporate shall have to give a notice along with the details of securities so allotted or sold to the Board within seven days.

(2) Upon receipt of a notice as referred to in Sub-section (1), where it appears necessary to make the allotment and sale of such securities fair and informative for the interests of investors and the body corporate, the Board may give necessary directive to the concerned body corporate. It shall be the duty of the concerned body corporate to abide by such directive.

29. Securities to be issued publicly: (1) Where a body corporate is to sell and distribute securities to more than fifty persons at a time, it shall make public issue for the sale and distribution of such securities.
(2) The period to be open for making application of the securities to be issued pursuant to Sub-section (1) shall be as prescribed. (3) The provisions relating to the value and allotment of securities for which public issue has to be made shall be as prescribed. (4) Where securities for which public issue has been made once could not be sold and have to be re-issued again within one year, the body corporate which so issues the securities may, with the approval of the Board, issue such securities by mentioning the matters which are different than the matters set forth in the previously published prospectus and the prospectus previously published.

30. Prospectus to be published: (1) A body corporate shall have to get a prospectus approved by the Board for making public issue of securities in accordance with this Act after the commencement of this Act and publish the prospectus for information to all the concerned. While publishing the prospectus in such a way, the prospectus shall also mention the place where the general public can obtain or inspect the prospectus.

(2) Notwithstanding anything contained in Sub-section (1), it shall not be required to issue a prospectus to issue the following securities: (a) Securities issued by the Nepal Rastra Bank,
(b) Securities issued against the full guarantee of the Government of Nepal,
(c) Securities proposed to be sold to up to fifty persons at a time,
(d) Securities issued to own workers or employees,
(e) Securities permitted by the Board as to issue and sell without issuing a prospectus.

31. Approval of a prospectus: The Board shall approve only a prospectus which contains such information as may be adequate for investors to make evaluation as to the assets and liabilities, financial status, profit and loss of the issuer and matters expected in the future.

32. Matters to be referred to in prospectus: Every prospectus shall contain such general matters as required to be set down in the prospectus, capital and other information of the issuer, main functions to be done by the issuer, information pertaining to legal action, economic condition, general administration, management of the issuer, information relating to the expert preparing the prospectus and the economic statements contained in the prospectus and such other matters as may be prescribed.

33. Liability for matters referred to in prospectus: (1) The concerned body corporate and the director signing a prospectus and the expert preparing such a prospectus shall be personally and collectively liable for the truth of the details and documents underpinning the information set down in the prospectus submitted to the Board for the purpose of registering securities with the Board and obtaining permission to issue such securities.

2) Where any person who subscribes for any securities on the faith of the matters set down in the prospectus subsequently sustains any loss or damage by the reason that the matters set down in the prospectus have been set down with mala fide intention or untrue or false statements have been included therein knowingly, the body, director or experts preparing the prospectus shall be liable to pay compensation for such loss or damage. Provided that no director shall be liable to pay such compensation if he or she proves that he or she has resigned prior to making a decision on the matters set down in the prospectus with ulterior motive or knowingly or that he or she did not know that the prospectus was untrue.

(3) Where any investor sustains any loss or damage by the reason that the prospectus, information, statements or returns submitted by a body corporate to the Board, such an investor may make a petition to the concerned District Court for compensation within thirty five days from the date of knowledge within one year after the making of investment.

34. A body corporate to make a notice: (1) Every body corporate issuing securities shall provide information on the following matters to the Board and its shareholders as soon as possible: (a) Such matters as may be necessary and supportive to evaluate its financial condition, (b) Such information as may be capable of affecting the transaction of stock exchanges or the value of securities.

(2) Every body corporate issuing securities shall also provide the Board and its shareholders with the notice and information as prescribed, in addition to the matters set down in Sub-section (1).

35. Compensation for revocation of enlisting, if any: Where a body corporate issuing any securities has enlisted the securities by making agreement with a stock exchange and the stock exchange revokes the enlisting of such securities by the reason of the failure of such body corporate to observe such matters as required to be observed by it under this Act or the Rules or Bye-laws framed under this Act any shareholder sustains any loss and damage by virtue of such revocation of enlisting, the directors of such a body corporate shall personally or collectively pay compensation to such a shareholder.

Chapter-4 Provisions Relating to Stock Exchange

36. License to be obtained to operate stock exchange: (1) A person who desires to operate a stock exchange shall obtain from the Board the license to operate the stock exchange under this Act.

(2) No person shall operate a stock exchange or purchase, sell or exchange securities without obtaining from the Board a license under this Act nor shall any person use the name of stock exchange without obtaining such a license.

(3) Notwithstanding anything contained in Sub-section (2), Nepal securities exchange market which is in operation at the time of commencement of this Act shall have to make an application to the Board for the license to operate a securities exchange market pursuant to this Act within one year from the date of commencement of this Act. Nothing shall be deemed to have been hindered the operating of the securities exchange market by Nepal securities exchange market within that period.

(4) Where Nepal Securities Exchange Market fails to make an application to the Board for a license to operate a securities exchange market within the period referred to in Sub-section (3), Nepal securities exchange market shall not be entitled to operate the stock exchange after the expiry of that period. (5) Notwithstanding anything contained elsewhere in this Section, while incorporating any stock exchange as a company with limited liability under the companies law in force after the commencement of this Act, the Company Registrar’s Office shall incorporate it only with the recommendation of the Board.

37. Application to be made to carry on stock exchange: (1) Only a body corporate may make an application to the Board for a license to carry on a stock exchange. (2) A body corporate shall have to make an application referred to in Sub-section (1) in such format and accompanied by such details. Documents and fee as may be prescribed.

38. Issue of a license to carry on stock exchange: (1) If an application is received pursuant to Section 37, the Board may, if it is satisfied with the following matters by making necessary inquiry into the matter, issue a license to carry on a stock exchange in such format as may be prescribed: (a) Where it considers that the issue of the license to carry on a stock exchange would serve the interests of investors and general public or the issuance of such a license is necessary for the proper operation of the stock exchange,

(b) Where the applicant body corporate has fulfilled the matters referred to in Sub-section (2).

(2) A body corporate which makes an application to the Board for a license to carry on a stock exchange pursuant to subsection (1) shall set out the following matters in the application: (a) Legal provisions of establishing the body corporatoer its memorandum of association stipulates that the body corporate has been established with object to establish and operate at sock exchange,
(b) The body corporate maintains its paid up capital as prescribed by the Board that such capital is not less than fifty million rupees so long as the body corporate operates the stock exchange,
(c) There are sufficient grounds to the satisfaction of the Board that the body corporate can provide such infrastructures and facilities as may be required to operate the stock exchange,
(d) Matters relating to enlisting or making similar other provisions to recognize securities to be transacted through itself,
(e) Matters that the interests of investors would be protected through regular operation of transactions in securities through the provisions and systems to be adopted by the body corporate in relation to the exchange and transactions proposed by the body corporate for the operation of the stock exchange,
(f) That it has appropriate provisions on settlement of transactions in the stock exchange and publication of records thereof and statements of transactions,
(g) That complaints filed in relation to transactions carried on by its members can be examined in a proper manner,
(h) That action can be taken as mentioned in the Bye-laws in the event of failure of its members to fulfill the liabilities under the contract.

39. The Board may specify terms: (1) In issuing the license to carry on a stock exchange, the Board may specify necessary terms taking into account the condition of capital market, healthy operation of the stock exchange and interests of investors. It shall be the duty of the concerned stock exchange to observe such terms. (2) The Board may, as per necessity, alter and modify the terms specified pursuant to Sub-section (1), having regard to the condition of capital market, healthy operation of the stock exchange and interests of investors.

40. Power to refuse to issue license to carry on stock exchange: (1) Notwithstanding anything contained in Section 38, the Board may, on any of the following conditions, refuse to issue a license to a body corporate to carry on a stock exchange: (a) Where it is not necessary to carry on the stock exchange based on the development of industry and business and feasibility of the existing transactions in securities, (b) Where it does not appear just and appropriate to allow the operation of stock exchange for the protection of interests of investors. (2) Where the Board is to refuse the issue of a license to any body corporate to carry on the stock exchange on any condition referred to in sub- section (1), the Board shall give a notice assigning the reason for such refusal to the concerned body corporate.

41. Minimum capital and financial source: The paid up capital of a body corporate carrying on a stock exchange shall be so prescribed by the Board, from time to time, as it shall not to be less than fifty million rupees; and the body corporate shall maintain such financial source as may be adequate for the provision of stock exchange that it carries on.

42. Validity period and renewal of a license to carry on stock exchange: (1) The license issued to carry on a stock exchange shall remain valid only until the last day of the fiscal year of its issue. (2) The corporate carrying on a stock exchange shall have to renew the license to carrying on a stock exchange by paying to the Board an annual fee as prescribed not later than three months after the expiry of each fiscal year. (3) In the event of failure to get renewed such a license by paying the annual fee within the time limit referred to in subsection (2), the license may be renewed by paying a fine of twenty five percent of the annual fee up to three months after the expiry of such time limit. (4) The license to operate stock exchange obtained by a body corporate which fails to renew even within the time limit referred to in Sub-section (3) shall be terminated.

43. Transactions of recognized securities: (1) A stock exchange shall manage a market only for those securities which are recognized by either enlisting in its Bye-laws, as prescribed, securities issued by bodies corporate or making similar other provisions. (2) The purchase, sale or exchange of securities not enlisted in a stock exchange shall be as prescribed.

44. Managerial responsibility of stock exchange: The board of directors of the stock exchange shall assume responsibility in relation to the management of transactions in securities carried on by such a stock exchange.

45. Functions, duties and powers of stock exchange: The functions, duties and powers of the stock exchange shall be as follows: (a) To carry on, or cause to be carried on, transactions in securities to be carried on through it in a transparent, fair and regular manner,
(b) In carrying on the stock exchange, to carry on, or cause to be carried on, the same, having regard to the interest of general public investors,
(c) To get its members to fully comply with this Act and the Rules and Bye-laws framed under this Act and monitor and supervise, or cause to be monitored and supervised, the matters pertaining thereto,
(d) To manage such a transaction place as may be adequate and convenient for operating securities transaction,
(e) To manage such employees as may be efficient in carrying on transactions,
(f) To arrange for such facilities and systems as may be adequate and proper for emergency and security provisions,
(g) To frame Bye-laws, with the permission of the Board, for enlisting of securities for the arrangements of the exchange, purchase or sale of securities and making provisions relating to membership,
(h) To perform or cause to be performed such other functions as may be required for the operation of the stock exchange.

46. Disclosure to be made by stock exchange: Every stock exchange shall give information on the following matters to the Board immediately when it comes to its knowledge:- (a) Where it appears that any of its members has committed any financial irregularity or the economic status of such a member appears to be suspicious from any activities of such a member, (b) Where it appears that any of its members has failed to fulfill such obligation as required to be fulfilled by such a member under laws or is not capable of performing such obligation, (c) Where it appears that any of its members has failed to observe financial Rules and Bye-laws or is not capable of observing such Rules and Bye-laws, (d) Such other information as may be prescribed.

47. Stock exchange to submit a report: Stock exchange shall submit to the Board a report on the activities carried out by it in each fiscal year not later than three months after the expiration of such a fiscal year.

48. Stock exchange to issue direction: (1) The stock exchange may, where a body corporate carrying on securities transactions through a stock exchange violates the agreement entered with the stock exchange or where the stock exchange considers that it is necessary to give direction to such a body corporate in order to make securities transactions fair and regular or having regard to the interests of investors, give necessary direction to such a body corporate.

(2) It shall be the duty of the concerned body corporate to observe the direction given pursuant to Sub-section (1).

49. Ceiling of securities transactions may be fixed : (1) The Board may fix the ceiling of securities that can be transacted at one time or the ceiling of securities that any one person can purchase, sell and hold at one time as prescribed.

(2) In fixing the ceiling pursuant to Sub-section (1), several ceilings may be determined based on the types of securities or types of transactions.

(3) Without prejudice to the generality of Sub-section (1), the Board may specify or fix the maximum limit of securities of any type that one person may own at one time, in such manner as prescribed.

50. Charge to be paid by stock exchange: (1) A stock exchange shall collect such securities transaction charge as may be chargeable as prescribed for the purchase, sale and exchange of securities in the stock exchange and pay such charge to the Board. Provided that such charge shall not exceed 0.03 percent of the total turn over of securities transactions.

(2) A stock exchange shall pay to the Board the amount for the charge prescribed pursuant to Sub-section (1) and collected in the previous year, not later than the last day of each month. A stock exchange that fails to observe this Section shall be deemed to have committed an offense referred to in this Act.

(3) The Board shall realize and recover the amount receivable for the securities transaction charge, in addition to an interest at the rate of ten percent, from a stock exchange failing to pay to the Board the securities transaction charge within the time limit specified in Sub-section (2).

51. Stock exchange to assist Board: A stock exchange shall render necessary assistance to the Board for the performance of functions referred to in this Act. In the course of rendering such assistance, if the Board asks for any information or advice on securities transactions or on any other specific matter, such information or advice has also to be provided to the Board.

52. Information of action to be given: If a stock exchange has demanded explanation from any of its members on any action against such a member or suspended or canceled the membership of such a member or imposed any fine on such a member or taken any other action against such member, the stock exchange shall give information thereof to the Board, specifying the name of the concerned member and also description on action and the reason for taking such action, within seven days after taking such action.

53. Stock exchange to provide for compensation fund: (1) A stock exchange shall establish and operate one such compensation fund as may be prescribed by the Board in order to protect investors against possible loss or damage.

(2) The funds deposited to the fund referred to in subsection (1) shall be used to bear compensation as prescribed.

54. Provisions relating to operation of compensation fund: The following provisions shall be made in the Rules in relation to the operation of the compensation fund to be established pursuant to Section 53 or 55: (a) Provisions relating to the deposit of money to the fund,
(b) Maximum amount to be paid as a compensation from the fund,
(c) Provisions relating to the accounts and audit of the fund,
(d) Conditions for making claim to obtain amount from the compensation fund and procedures from making such a claim,
(e) Conditions where any claim cannot be made on the compensation fund,
(f) Procedures for taking action and making decision on payment of money as claimed from the compensation fund,
(g) Maximum limit of amount payable as a compensation to one person,
(h) Other necessary matters in relation to the examination of compensation claims,
(i) Provisions to be made in the event of the revocation of the license of a stock exchange,
(j) Other necessary provisions in relation to compensation.

55. Board to make provisions on compensation: If a stock exchange is not able to establish and operate the compensation fund pursuant to Section 53 in order to protect investors against possible loss and damage or does not pay or fails to pay the amount of compensation to be payable as prescribed, the Board may establish and operate the compensation fund as prescribed or make necessary provisions in relation to the payment of the amount of compensation required to be paid as prescribed.

Chapter-5 Provisions Relation to License to Carry on Securities Business

56. License to be obtained to carry on securities business: (1) A company or body desirous of carrying on securities business has to obtain a license to carry on securities business from the Board pursuant to this Act. (2) No one shall carry on securities business without obtaining a license to carry on securities business from the Board pursuant to this Act.

57. Application for license to carry on dealing in securities: (1) A company or body desirous of carrying on dealing in securities has to make an application to the Board for a license to carry on securities business, in such form and accompanied by such details, documents and fees as may be prescribed.

(2) The application to be made pursuant to Sub-section (1) shall specify the following matters:- (a) Type of securities business and services to be provided, (b) If an agent is to be appointed to carry on securities business and if such business is to be carried on in collaboration with others, matters pertaining thereto, (c) In the case of those business persons, as prescribed, who are allowed to carry on business only upon obtaining a membership of a stock exchange, a recommendation letter of the concerned stock exchange, (d) Grounds proving the ability to carry on the proposed securities business and such other information as may be specified by the Board.

58. A license to carry on securities business to issue: (1) If an application is received pursuant to Section 57, the Board may hold necessary inquiry and issue a license to carry on securities business in such format as prescribed, to the applicant on the following grounds:- (a) If it thinks that, based on the conditions set forth in Sub-section (2), the applicant is able to carry on securities business subject to this Act or the Rules and Bye-laws framed under this Act, (b) Training and education qualification gained by the agent appointed to carry on securities business.

(2) The following matters shall also be considered in relation to the chief executive, director, concerned officers and agents serving in the company or body making application for the license to carry on securities business:- (a) Financial status, (b) Educational qualification, training and experience in the relevant work, (c) Experience required to carry on securities business, (d) Social status and character.

(3) Notwithstanding anything contained above in this Section, a license to carry on securities business other than securities brokerage and investment consultancy service shall be issued only to a public limited company or a body corporate established under the laws in force.

(4) Notwithstanding anything contained elsewhere in this Act, the Board may, having regard to the interests of capital market and investors in securities, so issue a license to any securities business person that such person is restrained from carrying on any securities, business out of the types of securities business.

59. Board to specify terms and conditions: (1) In issuing a license to carry on securities business, the Board may specify necessary terms and conditions, having regard to the condition of capital market, healthy operation of securities business and interest of investors.

(2) It shall be the duty of the company or body having obtained a license to carry on securities business to comply with the terms and conditions specified by the Board pursuant to subsection (1).

(3) The Board may make necessary modifications and alteration in the terms and conditions specified pursuant to Sub-section (1), having regard to the condition of capital market, healthy operation of securities business and interest of investors. 60. Power to refuse to issue a license to carry on securities business: The Board may refuse to issue a license to carry on securities business to any company or body on the following circumstances:- (a) if it is proved that such company or body has been insolvent upon being unable to repay debts to creditors,

(b) if the application to be made for such a license is not accompanied by such documents and details as required to be accompanied under this Act or the Rules framed under this Act or such other matter as may be specified by the Board, (c) if, upon considering the matters set forth in subsection (2) of Section 58, it is not appropriate to issue a license to carry on securities business.

61. Validity and renewal of a license to carry on securities business: (1) The license issued to a securities business person to carry on securities business under this Act shall remain valid only until the end of that fiscal year in which it has been issued.

(2) The securities business shall have to get such a license renewed by paying the annual fees as prescribed to the Board within three months from the date of expiry of each fiscal year.

(3) In the event of failure to get a license renewed by paying the annual fees within the time-limit referred to in subsection (2), such license may be got renewed by paying a fine of twenty-five percent of the annual fees up to three months from the date of expiry of that time limit.

(4) The Board shall revoke the license of a securities business person who has failed to get such a license renewed even within the time-limit referred to in Sub-section (3), and publish a notice thereof for information to the general public.

62. Power to prescribe for carrying on securities business through a subsidiary company: Notwithstanding anything contained elsewhere in this Act, the Government of Nepal may, on the recommendation of the Board and by notification in the Nepal Gazette, prescribe that a bank or financial institution established under the laws in force is entitled to carry on securities business only through its subsidiary company. Provided that such a subsidiary company shall not be entitled to do other acts except the dealing in securities.

63. Types of securities business: (1) For the purposes of this Act, the securities business shall be divided into the following types:- (a) Securities brokerage,
(b) Securities trade,
(c) Issue and sales management,
(d) Investment management,
(e) Investment consultancy service,
(f) Collective investment fund management,
(g) Securities registration or securities central deposit service or custodial service,
(h) Service relating to the settlement of the account of securities transactions,
(i) Market maker,
(j) Such other business as may be specified by the Board to be a securities business.

(2) The scope and other provisions of the securities business referred to in Sub-section (1) shall be as prescribed. 64. License not to be issued to carry on securities business without specifying agent: (1) No license shall be issued to any one to carry on securities business as a securities broker without specifying at least one person to act as an agent of the securities broker. (2) No license shall be issued to any one to carry on securities business as a securities trader without specifying at least one person to act as an agent of the securities trader.

(3) No license shall be issued to any one to carry on securities business relating to collective investment scheme and investment fund management without specifying at least one person to act as an agent of the scheme manager.

(4) The procedures to be fulfilled in specifying an agent by a securities business person, qualification of the agent and provisions relating thereto shall be as prescribed.

65. Formal agent: (1) Only after the registration of the appointment of any person as an agent of a securities business person with the Board pursuant to Sub-section (3), such a person shall be deemed to be a formal agent for that securities business.

(2) In making registration of the appointment of an agent with the Board pursuant to Sub-section (1), the securities business person shall inform the Board about the appointment of such agent and the person to be appointed as an agent shall also inform the Board that he or she agrees to be an agent of such a securities business person.

(3) Upon receipt of the notice pursuant to Sub-section (2), the Board shall, within fifteen days, make entry in the register as prescribed, specifying the name, address and other necessary details of the agent and issue the agent registration certificate to such an agent.

(4) If the agreement made between the agent and the securities business person appointing the agent is canceled, for any reason whatsoever, information thereof shall be given to the Board immediately, and the agent shall also return the certificate obtained by him or her to the Board within seven days.

(5) The securities business person who appoints a formal agent shall be responsible for all acts done by such a formal agent.

66. Rights of securities business person: (1) No license to carry on securities business obtained by a securities business person shall be suspended or revoked without providing such a securities business person with a reasonable opportunity of hearing. (2) In suspending or revoking a license to carry on securities business, information thereof shall be given in writing to the concerned securities business person, and such a notice shall indicate the reasons for such suspension or revocation, date of entry into force of such suspension or revocation and the period of suspension, in the case of suspension.

(3) A securities business person who is dissatisfied with the decision made to suspend or revoke a license obtained by such a securities business person to carry on securities business person may make an appeal to the concerned Appellate Court within thirty five days from the date of such decision.

67. Minimum capital and financial source of securities business person: (1) A securities business person shall, in carrying on the securities business, maintain the minimum capital and financial source as prescribed.
(2) If a securities business person fails to maintain the minimum capital and financial sources required to be maintained pursuant to Sub-section (1), information thereof shall be given to the Board immediately.
(3) If the Board receives the information referred to in Sub-section (2), it may immediately order such a securities business person to maintain the minimum capital and financial source as prescribed or give other necessary directives in that regard.

68. To maintain records of securities business persons:
(1) The Board shall maintain a register of all licensed securities business persons and maintain updated records in the register.
(2) The following matters shall also be specified in the register to be maintained pursuant to Sub-section (1) and updated records of securities business persons maintained therein:-
(a) Names and addresses of securities business persons,
(b) Date of issue of license to securities business persons,
(c) Types of securities business,
(d) Terms and conditions specified in the license,
(e) Names and addresses of the formal agents,
(f) Names and addresses of managers and officers,
(g) Place where documents and records pertaining to securities business are kept,
(h) Names of the directors of company or body, names of company secretaries and name of each shareholder and number of shares held by such a shareholder,
(i) Such other details as the Board considers necessary and appropriate.

69. Records of formal agents: (1) The Board shall maintain a register of all formal agents and maintain updated records in the register.

(2) The register to be established pursuant to Sub-section (1) shall, inter alia, contain the following matters and also updated records of formal agents shall be maintained therein:-
(a) Name and address of formal agent,
(b) Date of registration as formal agent,
(c) Name and address of securities business person appointing agents,
(d) Such other details as the Board considers necessary and appropriate.

70. Information to be given: The securities business person shall, on any of the following circumstances, give information in writing thereof to the Board within seven days from the date of such occurrence:-
(a) If the securities business person ceases to carry on the securities business specified in the license,
(b) If any formal agent ceases to act in such capacity,
(c) If any alteration is made in any details set forth in the register maintained pursuant to Section 68.

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