Nepal Government Proposes Strict Amendments to Building Act, Slashing Fines Up to Tenfold

Kathmandu. The government has prepared a draft bill titled 'Building (Second Amendment) Act, 2082' to amend the Building Act, 2055. The Ministry of Urban Development has published the draft on its website for feedback and suggestions.

This bill aims to further strengthen building construction regulations and discourage haphazard construction. Key changes include a significant increase in fines, the addition of new building categories, and an expansion of the roles of local levels and relevant government agencies.

The government has made far-reaching amendments to the 'Building Act, 2055' with the objective of strictly controlling Nepal's uncontrolled urbanization and the trend of non-compliant building construction. Significant increases in the penalty clauses and new provisions have been added through the 'Building (Second Amendment) Act, 2082.'

This amendment now grants local levels the authority to impose fines of up to five lakh rupees, seize property, and even cut off basic services for those who construct buildings without permission or alter approved maps. With this amendment coming into immediate effect, a new phase of strict enforcement has begun in the construction sector.

Fines for Non-Compliant Building Construction Increased by Tenfold

The original Building Act, 2055, stipulated a maximum fine of up to fifty thousand rupees for non-compliant building construction, which was considered very low compared to rising construction costs and profits over time. Because of this, many individuals and entities were constructing non-compliant structures while paying small fines. However, the new amendment adopts a strict policy to economically discourage illegal construction by increasing the fine amount up to ten times.

According to the newly amended Clause 14, a fine of up to five lakh rupees will be imposed on the concerned individual or entity for constructing a building without map approval as per prevailing laws. Similarly, a fine of up to two lakh rupees will be imposed for altering an approved map without obtaining fresh approval or for construction that violates the standards mentioned in the building code. These fine amounts are significantly higher than before, drastically increasing the financial burden for non-compliant activities.

Not only are the fines increased, but the new amendment also grants local levels more powerful and stringent authority to control illegal construction. If construction is found to be proceeding without approval or in violation of standards, local levels can order an immediate halt to the work. Furthermore, the authority of local levels to order the demolition of non-compliant buildings or any part thereof remains intact.

Additionally, if the order to halt construction or demolish is not complied with, the concerned building or property can be seized, preventing it from being transferred (sold) or mortgaged (pledged) to anyone. This provision will restrict the exercise of legal rights over the property, putting pressure on illegal builders.

Furthermore, if the order is not complied with, the local level can prohibit the supply of utilities such as water taps, electricity, and telephone connections to the constructed building. If those services have already been supplied, the local level can write to the concerned offices to disconnect facilities including electricity, drinking water, and telephone services. This provision is intended to make illegal buildings uninhabitable, compelling builders to comply with the law.

This amendment is expected to contribute significantly to safe, organized, and sustainable urban development. The government's strategy of compelling citizens to comply with building codes by increasing fines and imposing restrictions on property rights and access to basic services is expected to help mitigate future uncontrolled construction and the risks arising from it.

New Provisions Regarding Design

The bill to amend the 'Building Act, 2055' to make Nepal's building construction sector organized and safe includes significant improvements in the design and map approval process. The original Act of 2055 initiated basic regulation requiring the submission of maps for building construction, certification by a technician, and approval from the local body. The first amendment in 2064 brought further clarity to this process, making it mandatory to submit designs along with maps according to the building category in both municipal and village development committee areas, and emphasizing the involvement of specialized technicians like earthquake engineers for 'A' category buildings.

The bill being prepared for amendment has made the design and map approval process unprecedentedly strict, specialized, and modern. It classifies buildings into five categories (including the new 'E' category) and specifies the required expertise for each category, ranging from experts registered with the Nepal Engineering Council to technicians with certificate-level qualifications.

A separate approval process has been established for federal and provincial government bodies. Specifically, for high-risk buildings taller than 40 meters or exceeding 2,000 square meters in area, inspection by subject matter experts has been made mandatory.

To make the process transparent and faster, a provision has been included allowing for the implementation of an electronic building map passing system, which must be linked to a central system. Furthermore, this amendment also incorporates the provision that building retrofitting work for old buildings must be carried out according to the directives specified by the Ministry. Thus, this development from 2055 to 2082 marks the entry of the building approval process from basic regulation into a modern era characterized by digital technology, specialization, and stringent standards, aiming to guarantee safe and sustainable construction.

What was amended in the first instance?

The first amendment to the Building Act, Act, 2064, primarily brought improvements and clarity to building classification, definitions, committee structure, and the process of submitting designs and maps. The main focus of this amendment was to streamline the procedural aspects of construction.

The first amendment did not bring significant changes to the fine amounts mentioned in Clause 14 related to penalties. Although attempts were made to broaden the scope of implementation by slightly modifying the provisions of the original Act, there was no substantial increase in the amount of financial penalties at this stage.

As a result, compared to the rising construction costs and profits, the fine amounts remained low, posing a persistent challenge to fully discourage non-compliant construction.