Section 56: Prohibition on making building or settlement

1) No residential or other building of any type or settlement may be made within such area of, and distance from, an industrial village, industrial zone and special economic zone to be established after the commencement of this Act as specified by the Government of Nepal by publishing a notice in the Nepal Gazette.

2) In prevention of making a residential building or other building or settlement in a private land of any person situated within the area and distance specified under sub-section (1) results in a loss or damage, the Government of Nepal shall provide reasonable compensation to the concerned person within such time-limit and by the fulfilling such procedures as prescribed.