Section 32: Exemption on land ceiling

1) If any industry requires such land that exceeds the ceiling of land allowed under the prevailing law, the industry may make an application to the industry registration body to have an exemption from the ceiling with respect to the land exceeding the ceiling.

2) The industry registration body shall examine, as required, the application received under subsection (1) and submit a report along with its opinion to the Ministry.

3) On the application received under subsection (1), the Government of Nepal may, subject to the prescribed criteria, grant exemption so that the industry can hold land exceeding the ceiling, according to the need of, and as mentioned in the approved scheme or project proposal of, the industry. The land so exempted from the provision of the ceiling may not be used for any other purpose than the purpose for which it has been exempted.

4) The industry registration body may monitor, or cause to be monitored, as prescribed, whether the industry has used the land exempted from the ceiling under the prevailing law as per the
approved objective and give necessary direction.

5) If the industry is found not to comply with the direction given by the industry registration body under sub-section (4), the Government of Nepal may withdraw the land exceeding the ceiling
which such industry is allowed to hold, in accordance with the prevailing law, without any condition.

6) An industry permitted to hold land exceeding the ceiling under the prevailing law may not sell, distribute, or otherwise transfer right in or borrow a loan from a bank and financial institution against the security of the land so held exceeding the ceiling.

7) The quantity of maximum land allowed to be held by an industry on the basis of the need, capital and nature of the industry, provisions relating to the provision of land in excess of the ceiling,
criteria, including conditions to be observed by the industry in that respect, shall be as prescribed and subject to the prevailing law on land.