Chapter-7 Provisions Relating to the Leasehold Forest

Chapter-7 Provisions Relating to the Leasehold Forest

  1. Grant of leasehold forest: (1) The Government of Nepal may grant any part of the national forest losing its status as such, in the form of leasehold forest, to any body corporate established under the prevailing law, by making agreement as prescribed, for any of the following purposes:

(a)        To produce raw materials required for the industries based on forest products,

(b)        To sell and distribute or utilize the forest products by increasing its production through afforestation,

(c)        To operate agro-forest crops or livestock firms in a way that is compatible with the conservation and development of the forest,

(d)       To operate farm of insects, butterflies and wildlife in a way that is compatible with the conservation and development of the forest,

(e)        To operate eco-tourism business in a way that is compatible with the conservation and development of the forest.

Explanation: For the purpose of this Section, “forest losing its status as such” means the forest of which crown coverage is less than twenty percent.

(2)        Notwithstanding anything contained in sub-section (1), the Division Forest Office may, by making a work plan for the alleviation of poverty of the people below the poverty line, provide a forest area in the form of the lease-hold forest to a group of such people, to carry out income generating programs in a way that is compatible with the conservation and development of the forest.

  1. Leasehold forest may be taken back: (1) If the party to the agreement or any other person does any act inconsistent with the work plan in the leasehold forest or any act which causes loss or damage to the forest, the Division Forest Officer may decide to take back such leasehold forest as prescribed, and the person, body or community that does such act shall be liable to the punishment as if the offence were committed in other national forest.

                        Provided that prior to making such decision to take back the lease-hold forest, the concerned party shall be provided with a reasonable opportunity to submit clarification.

(2)        The party who is not satisfied with the decision made by the Division Forest Officer pursuant to sub-section (1) may make a complaint to the Director General of the Department within thirty-five days from the date of such decision.

(3)     The decision made by the Director General of the Department on the complaint made pursuant to sub-section (2) shall be final.

(4)        Notwithstanding anything contained elsewhere in this Section, if any act is done inconsistent with forest protection in the forest area provided pursuant to sub-section (2) of Section 26, the Government of Nepal may decide to take back such leasehold forest at any time, and the forest so taken back shall be managed as the Government-managed forest.