Nepal’s New Regulation Opens Door for Government to Harness Seized Properties for Revenue Generation
Introduction
In a bid to generate revenue from seized properties related to various criminal offenses, the government of Nepal has introduced a new regulation, Offence-related Assets and Goods (Freezing and Confiscation) Act-2070. The newly enacted law allows authorities to utilize these properties for income-generating activities such as leasing or renting out properties, using confiscated land for farming purposes, and other productive ventures.
Clarification Needed
However, officials admit that the regulation lacks clarity on when seized or forfeited properties can be used for revenue generation. According to Krishna Prasad Pantha, Under Secretary at the Ministry of Home Affairs, “The seized properties presented as evidence in a crime case can be utilized after obtaining approval from the concerned court. But it is still unclear whether all seized properties can be used for income-generating activities.”
Background
Prior to the new regulation, confiscated properties and goods would remain unused until the courts announced final verdicts. The agencies authorized to confiscate goods and properties include:
- Nepal Police
- Department of Money Laundering Investigation
- Commission for Investigation of Abuse of Authority
- Department of Revenue Investigation
Formation of a New Department
The new law envisions the formation of a department to manage seized and forfeited properties, with the Home Ministry constituting a Faulty Asset Management Unit to coordinate property management until the proposed department is established. However, officials admit that the government lacks exact details on how many properties and goods are being held by various regulating agencies.
“We are collecting details through District Administration Offices across the country,” said Pantha, adding that an investigative officer needs to submit details of confiscated properties to the District Administration Office every month. The Faulty Asset Management Unit is currently collecting these details as the department has not been formed.
Challenges Ahead
It may take time for the department’s formation as organization and management surveys need to be conducted before its establishment, according to Chakra Bahadur Budha, Spokesperson at the Home Ministry. Despite collecting details from District Administration Offices, the ministry needs to coordinate with other regulatory authorities that do not fall under its purview.
“We need to coordinate with agencies such as the Department of Money Laundering and other regulatory agencies,” said Pantha, emphasizing the importance of collaboration in managing seized properties for revenue generation.
Conclusion
The new regulation provides an opportunity for the government to harness seized properties for revenue generation. However, clarity is needed on when these properties can be used for income-generating activities. The formation of a department to manage seized and forfeited properties is also essential to ensure effective coordination and management.