A REVIEW ON

PUBLIC ROAD ACT, 2031 AND

OWNERSHIP OF JOINT HOUSING ACT,
2054
Presenters:
Manoj Thapa (071/MSU/208)
Sharad Pandit (071/MSU/214)

INTRODUCTION
Planning and Legislation are closely linked as a matter of
necessity, although they are antithesis by definition
Planning >> future- oriented, dynamic, anticipating change and
innovative
Legislation comprises a sense of static reliability, fundamental
validity and general principle
Planning legislation is set of legal rules for adopting any type of
planning process.

LEGISLATION RELATED TO URBAN

DEVELOPMENT
Local Self-Governance Act 1999 (2055)
Motor Vehicle and Transport management Act, 1993 (2050)
Industrial Enterprises Act, 1992 (2049)
Labor Act. 1992. (2049)
Municipality Act, 1991. (2048)
District Development Committee Act, 1991 (2048)
Village Development Committee Act, 1991 (2048)
Town Development Act 1988 (2045)
Kathmandu Valley Development Authority Act, 1988. (2045)
Solid waste management and Resource mobilization Act, 1987. (2044)
Public Road Act 1974 (2031)
Ownership of Joint Housing Act, (2054)

OBJECTIVES OF THE STUDY

To review the Public Road Act 2031 and Ownership of Joint Housing
Act, 2054.
To identify the strength and weakness of the act.

METHOD OF STUDY
Collection of relevant literatures, acts, articles and other related
documents.
Study and analysis of the collected Documents.
Preparation of report.

LIMITATIONS
The study is basically an academic exercise undertaken in a very
short span of time.
The study is limited to literature study of planning legislation with
salient features of Public Road Act, 2031 and Ownership of Joint
Housing Act, 2054.

PUBLIC ROAD ACT, 2031

Preamble:
Whereas, it is expedient to make provisions to classify all kinds of
public roads and acquire lands required for the development,
maintenance, expansion or improvement of the public roads and to
collect development tax from landholders near the roads who
benefit from the public roads, in order to maintain the convenience
and economic interest of the general public;
Now, therefore, be it enacted by His Majesty King Birendra Bir
Bikram Shah Dev, on the advice and with the consent of the
Rastriya Panchayat.

FEATURES OF PUBLIC ROAD ACT,

2031

PRELIMINARY
SHORT TITLE, EXTENT AND COMMENCEMENT:
This Act may be called the "Public Roads Act, 2031 (1974)".
It shall come into force throughout Nepal.
Chapter-4 of this Act shall come into force in such area or region on such date
as specified by the GoN by a Notification in the Nepal Gazette, and the other
Sections shall come into force immediately.
DEFINITIONS:
Public Road: Roads that are not subject to personal possession by any person,
and this term also includes all kinds of bridges, causeways, culverts, bi-cycle
ways and footpaths.
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.

CLASSIFICATION OF PUBLIC ROADS,

ROAD BORDER AND ACQUISITION OF
LAND
Classification as per Section 3 :
(a)Highways,
(b)Feeder roads,
(c) District roads,
(d) Urban roads.
Specify road border not exceeding 31 meters from the centerline
of the road.
Section 3A Prohibits construction of any structures within 6 meters
from the road border or road edge.
Section 4 provision for the acquisition of land for public roads in
accordance to law relating to the acquisition of land

PROVISIONS FOR MONITORING,

MAINTENANCE OF PUBLIC ROADS
Section 14 - Power to requisition other land in developing,
expanding or improving roads :
Section 15 Compensation for the requisitioned land for any
damage and loss caused to the landowner by negotiation or
arbitration. Landowner may file petition in court within 35 days if
not satisfied.
However the section 28 of the act states that the requisition of a
land shall not be barred only for a reason that a petition has been
filed in relation to compensation.

PROVISIONS FOR MONITORING,

MAINTENANCE OF PUBLIC ROADS
Section 16 DoR should plant of trees on both sides of the road
and VDC or municipality should take care of it.
Section 16A Provision for determination of max weight to be
allowed in road.
Section 17 - Provision to take Soil, Stone or Sand from Land in
Vicinity after approval from the landowner and compensation is to
be paid for any damages
Section 18 Power to remove goods causing Obstruction to
movement on public roads.
Section 19 Prohibit doing any act on public roads or road border
without obtaining permission
Section 20 Power to cause deposit furnished or collect fees if a
person is required to dig or demolish public road or border for

PROVISIONS FOR MONITORING,

MAINTENANCE OF PUBLIC ROADS
Section 21 -Power of Department of Roads to Recover
Expenses: DoR can recover the expenses incurred during the
demolition of any structures as mentioned under section 3A,
removal of any goods mentioned under section 18 and any action
mentioned under section 19 of the act from the concerned person.

PROVISIONS RELATING TO
DEVELOPMENT TAX
Section 22 enable GoN to levy the development tax on lands
within 250m
Section 23 categorize the area into 2 portion:
Land upto 125 m portion A 20% dev tax (section 24)
Land from 125m to 250 m portion B 10 % dev tax (section 24)
GoN can reduce the rate of the development tax leivable on a land
or make exemption from the development tax leivable on the land in
consideration of the situation of the land or for any other reasons by
a notification in Nepal Gazette.

MISCELLANEOUS PROVISIONS
Section 27- Provision for determination of compensation and petition
against determination
Section 29 notice to be given when road is to be dug by Government
office
Section 30 Provision of penalty for doing any thing against this act.
Section 30A Investigation >> to be done by at least first class gazetted
officer and Case to be filed before DoR or concerned authority.
Section 31 - DoR or the authority specified by the GoN by publishing a
Notification in the Nepal Gazette shall have the powers to make trial and
impose punishment. If the person is not satisfied with decision then
he/she may make an appeal to the Court of Appeal within 35days
Section 32- GoN may delegate any or all powers conferred to the DoR
pursuant to this Act to any authority
Section 33 - The GoN may frame Rules to implement the objects of this

STRENGTH OF THE ACT

The act has clearly defined the mechanism for temporary and permanent
acquisition or requisition of land for any development, maintenance and
expansion of public roads.
The act has been flexible on fixation of compensation via negotiation and
arbitration and also have made provision to file petition in the court if is not
acceptable to the concerned landowner.
The act focuses on smooth and hassle free flow of traffic and hence prohibits
the construction of any structures, placing of any good, performing of any
obstructive action within and at the periphery of the public road.
The act provides the guidelines for collecting development tax from the
landowners who are going to be benefitted from the development, expansion of
the public road.
The act has made provision for plantation of trees on either side of the road and
thus have been able to address the environmental concern and pedestrian
convenience.
The act has also made provision for road safety by imposing ceiling of weight
and further by limiting the width of the roads in some places as required.

WEAKNESS OF THE ACT

Does not provide a definition and specification of the different
classes, nor does it assign responsibilities for their management.
Prohibits construction of any structures within 6 meters from the
edge of the road regardless of the land use.
Havent mentioned the time frame for the compensation.
The act have adopted distance as only criteria for fixation of
development tax

OWNERSHIP OF JOINT HOUSING

ACT(OJHA), 2054
Preamble:
Whereas, it is expedient to resolve the existing housing problem
and provide for systematic settlement by developing joint housing
and selling and distributing moderate housing units in an easily
accessible manner and to provide for the rights and obligations of
the owners of such housing units, in view of the existence of a
situation that the urban habitants can be deprived of housing
facility due to increase in the price of land because of excessive
population pressure on the urban areas of Nepal;
Now, therefore, be it enacted by the Parliament in the Twenty Sixth
year of the reign of His Majesty King Birendra Bir Bikram Shah Dev.

FEATURES OF OJHA, 2054

DEFINITIONS
"joint housing building" means a building which has two or more than
two floors, contains two or more than two housing units and is built in
any land, and this term also includes similar types of two or more
than two buildings which are built by the name of blocks, pockets or
similar other designations in the same land;
"apartment' means any unit of a joint housing building, which
contains one or more than one room, along with such common areas
and facilities as may be enjoyed freely in such a building;
"developer" means a body corporate which is registered under the
prevailing law and has obtained permission under Section 5 to build
and operate a joint housing building;
"apartment owner" means a person or body corporate that purchases
or leases or otherwise possesses an apartment, subject to the terms
set forth in the agreement as referred to in this Act;

DEFINITIONS
"common areas and facilities" means the common areas and facilities
set forth in Section 16;
"limited common areas and facilities" means such areas and facilities
so made or placed as to be enjoyed only by some apartment owners;
"agreement" means an agreement entered into between the
developer and receiver of apartment in relation to the purchase,
lease or otherwise possession of an apartment;
"committee" means a Housing Management Committee formed
pursuant to Section 24 for the supervision, management and
operation of a joint housing building;
"competent authority" means a body or authority designated by the
Government of Nepal by a Notification in the Nepal Gazette; and

SALIENT FEATURES OF OJHA 2054

An individual, organization or a company who wants to construct an
Apartment Housing should write an application along with the proposed map,
structural design, land ownership certificate, distribution procedure of the
apartment units etc. (section 3)
Apartment housing cant be constructed without receiving the legal permit.
(Section 7)
Apartment can be sold for either full payment or by payment on installment. It
can also be sold or be given for the rental purpose(Section 8)
The ownership certificate should be issued in the specified format. And the
ownership is transferred only when the buyer pays off the total amount.
(Section 9)
The new owner of the apartment unit can sell or rent the apartment as per his
necessity. (Section 10)
The buyer cant transfer his ownership to another individual if he has not paid
off the total amount. (Section 12)

SALIENT FEATURES OF OJHA 2054

The owner of the apartment unit needs to establish consensus with
management committee for selling his apartment. But again there is a
provision which says that if the new owner has paid off the total amount of
the apartment, the management committee has to give the permission.
(Section 14)
The owner of any one of the apartment units can, without affecting the
rights of the owner of any other apartment units, enjoy the common
facilities or common places/areas like: parking areas, lobby, stairs, Gardens,
temples, stores, solar, Security guards, dumping site etc. (Section 16)
The common places or facilities cant be divided or partitioned.(section 17)
And the owner is obliged to bear the cost percentage as per the rule for the
management or maintenance of the common properties. (Section 18)
In case if an owner is reluctant to bear his share of money, the
management committee can prevent the owner from enjoying that service
or facility. (Section 20)

SALIENT FEATURES OF OJHA 2054

Apartment Housing should have its insurance. And it is the duty of the
founding members to manage, protect and maintain those apartment
units.( Section 21)
Incase if the Apartment housing is completely damaged or demolished,
all the owners of the apartment units will have proportional ownership
over the land. And if the apartment is partially damaged, the
management committee or the founding members should have to repair
it within the specified time. (Section 22)
Construction of the Apartment housing without construction permit would
be subjected to legal action. The construction company can be charged
fine up to Rs. 100,000. And the concerned authority can also issue order
for demolishing such buildings. Moreover, if anyone is injured from the
damaged part of such apartment, he/she can claim the appropriate
compensation from the committee. (Section 28)

STRENGTH OF THE ACT

This act has clearly defined the roles and responsibility of
competent authority, developers, apartment owners and the
management committee.
This act is flexible in construction of joint housing and buying and
selling apartments.
Housing can be erected only after taking permission. If constructed
without permission, liable to punishment.
Provision of insurance

WEAKNESS OF THE ACT

As per the section 14, the apartment owner should take consent from
developers or committee prior selling or renting his property. This act
mentions nothing if the developer or committee didnt give consent
having some vested interest.
As per the section 28, the provision of punishment in terms of monetary
value is not scientific. The monetary value has to be based in terms of
the damages incurred and the time frame has to be mentioned.
This act doesnt mention anything about the disputes settlement. It was
observed during survey that some of the developers were taking all the
money and the apartment units were not handed over after two years
despite the commitment. In the contract document developers write
that, the apartment will be given with full furnishing but the developers
handed over only RCC and partition wall. (Koirala, 2012)

CONCLUSIONS
The Public Road Act has entailed guidelines for planned road construction
with regard to traffic flow and road safety. It has also provided guidelines
to GoN to collect the development tax from the beneficiaries and also has
placed mechanisms for compensation. Although the act aims in the
planned construction and development of the public roads but even in the
existence of the act, the construction of narrow, unplanned roads in urban
areas points out the existence of lag and shortcomings within and on the
implementation of the act.
The ownership of joint housing act has setup the guidelines for
construction of high rise buildings and apartments, which was the need of
the time after the immigration in urban centers increased drastically
leading the unmanaged housing pattern in these areas as the existing
houses could not meet the demand. In order to manage these
unmanaged housing patter and to provide shelter for all the urbanities the
ownership of joint housing was introduced which made it easy for the
construction of apartments and joint houses.