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Chapter 5 Compensation

 

Chapter 5 Compensation

19. Compensation to be provided: (1) In respect of the land acquired pursuant to Section 15, Government of Nepal shall, subject to Section 20, provide the landowner with an amount of compensation at the prescribed rate. (2) After the transfer of the landowner’s right to another person, Ten percent of the amount of compensation shall be given within One year and the debentures issued by Government of Nepal shall be given for the rest amount. The interest at the rate so prescribed by Government of Nepal that it is neither less than Three percent nor more than Five percent per annum, shall be given on such debentures. A share in the capital to be invested in a development plan may be purchased by these loans in accordance with the terms prescribed by Government of Nepal within a period of Ten years after the date of issuance of the debentures. (3)33 The debentures given under Sub-section (2) shall be acceptable for such deposit or security as is payable to Government of Nepal and for borrowing a loan for an industry by furnishing them as security with any autonomous body corporate; and such debentures may be transmitted and sold or disposed of.

20. Compensation for land subject to usufruct mortgage or pledge: Where the land acquired from any landowner pursuant to Section 15 has been taken by any other person on usufruct mortgage or pledge, the creditor having taken the land on usufruct mortgage or pledge shall be entitled to the compensation to be obtained under Section 19.

Provided that, if the amount of compensation exceeds the amount of such creditor, the surplus amount shall be given to the debtor, and if the amount is lesser, the creditor shall not be entitled to claim the debtor for the shortfall amount.

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