September 5: The government has initiated the process to amend laws in order to allow real estate business only after acquiring license.

Minister for Law, Justice and Parliamentary Affairs Govinda Bandi has registered a bill in the House of Representatives to amend the Land Revenue Act 2034 in this regard.

The bill proposes adding a new provision in the Act. According to the ministry, the bill has included a provision that requires license for any individual or institution to get involved in real estate business. Such a provision has been include in Section 7(A) of the Land Revenue Act 2034.

Furthermore, anyone found involved in real estate business without acquiring license will be fined Rs 1 million. The new arrangement will be applicable only after the bill is endorsed by the parliament and then authenticated by the president.

So far, individuals and institutions are involved in real estate business without any license. The government had earlier announced in the budget for the current fiscal year that any individual or institution will be allowed to get involved in real estate business in metropolitan cities and sub metropolis only after acquiring license.

The government has made attempt to regulate the real estate business after a long debate. The National  Risk Evaluation Report prepared by the Office of the Prime Minister and Council of Ministers two years ago states that the real estate sector falls under the risk of money laundering.

Any individual or institution interested to acquire license for real estate business needs to submit the details and documents along with the prescribed fees to the concerned official once this new provision is published in the Nepal Gazette.

The government is likely to authorize an official of the federal government or the provincial government to issue license for the real estate business. Anyone fulfilling the required criteria can acquire the license. The bill has proposed the validity of such license for a period of five years.

Earlier, the government was planning to form a separate authority to regulate the real estate sector but the bill is not clear which unit of the government will issue the license and regulate the real  estate business.