KATHMANDU, July 28: The process of transferring a valuable property in Chhauni, given by former King Gyanendra Shah to his daughter Prerana as gift, to the Nepal Trust is now in its final stages. The 15-ropani land and residence, valued at around Rs 1.2 billion, is set to be officially brought under the Trust’s ownership following a Supreme Court (SC) verdict in 2020.
In February 2020, the SC upheld that the land and house in Chhauni legally belong to the Nepal Trust and dismissed Prerana’s petition challenging earlier rulings. The apex court stated that the property, originally registered in the name of the late King Birendra, was never legally Gyanendra’s to give away.
Following the verdict, the government initiated steps to execute the court’s decision. The Ministry of Land Management, Cooperatives and Poverty Alleviation (MoLCPA) has also been pressing for the transfer, while the Nepal Trust has written to the Ministry of Home Affairs requesting assistance in vacating the property and arranging necessary security.
“The Trust has repeatedly asked Prerana to vacate the premises, but she has not complied. As the deadline has expired, we’ve requested the Home Ministry’s intervention,” said Lok Neupane, spokesperson for the Nepal Trust.
Ex-Princess Prerana hospitalized
Although the government had initially granted Prerana a six-month grace period in December 2020 to continue residing in the property, she has yet to vacate it. With all legal avenues exhausted, the Trust is now pushing for the enforcement of the verdict.
The property had become a point of prolonged legal dispute. After the 2001 royal massacre, Gyanendra Shah assumed the throne and later gave the Chhauni property to Prerana as dowry. However, following the abolition of the monarchy in 2008, the government decided that all properties held by the late King Birendra, Queen Aishwarya, and their immediate family should be nationalized under the Nepal Trust.
Prerana challenged this move in court in 2015, claiming the property had been registered in her name before the Nepal Trust Act came into force. A joint bench initially ruled in her favor, stating that retroactively applying the law to personal property violated the principle of natural justice.
However, that verdict faced widespread criticism, and the Nepal Trust filed a review petition. In January 2017, a full bench of the Supreme Court reversed the earlier decision, ruling that the land rightfully belonged to the Trust, as Gyanendra never had legal ownership to transfer it in the first place.
In a final legal move, Prerana sought the dissolution of the Nepal Trust by filing a writ petition with the Constitutional Bench in December 2019, which was dismissed in February 2020.
Following that, the Trust issued a 35-day notice asking her to vacate the property. Prerana requested additional time, but the Trust is now pressing ahead with measures to reclaim the property.
Nepal Trust’s Expanding Portfolio
According to a white paper published six years ago, the Nepal Trust owns over 21,562 ropanis of land in 12 districts. Of this, around 172 ropanis are currently under cultivation by tenants (mohi). In 2012, the Trust approached the Commission for the Investigation of Abuse of Authority (CIAA) to reclaim land registered under tenant names.
The Trust also controls significant movable assets, including over Rs 780 million in cash, along with \$148,581 and £50,124 in foreign currency. Its investment portfolio includes 533,244 shares in Nabil Bank, 30,720 shares in Hotel de l’Annapurna, and 6,750 shares in the Nepal Industrial Development Corporation.
Currently, six Trust-owned properties—located in Gokarna, Kamaladi, Teku, Lajimpat, and two in Tahachal—are leased out for commercial use.
