Land Tenure System in Nepal:Past and Present



Land tenure system
In an agrarian economy the prime area in which political and legislative changes can have dramatic effects on production and distribution is in the sphere of land tenure[1].

In Nepal, land has traditionally been considered to be the property of the state. This system of state landlordism is known as Raikar….Traditionally, agricultural lands under Raikar tenure were cultivated by private individuals, but within the limits required for subsistence and withut the rights of alienation through sale or otherwise. Rights in Raikar lands thus comprised only the right to its use and its fruits[2].

Land was originally owned by the state, which gave it out to the people broadly in two ways. Firstly, the state alienated its ownership of land to officials and officers for some meritorious performances. It also granted land to priests for their religious and educational functions….The land thus given out by the state to individuals is called Birta land. Birta land may, therefore be defined as one whose ownership is alienated by the state to individuals[3]. ..Birta land, though entailed in the past some obligations to the state, was virtually free from any taxes until abolished in 1959. Such a land system is known as Birta system in Nepal[4]
Secondly, the state gave out land to tillers called Mohis or tenants for cultivation. Such land is , however, subject to payment of certain fixed revenue to the Government. Its ownership is also invariably retained by the state itself. Such land is called Raikar land which may, therefore, be defined as one which is subject to payment of some revenue to the state and whose ownership is also retained by the state itself. This land system is known as Raikar system[5]

If the state alienates its ownership of land to some charitable, religious or philanthropic institutions, such land is called Guthi land, which is administered by the state or by the institutions themselves. The incomes from such land are used for religious and charitable purposes[6]
Before 1950, there are mainly two types of land tenure system in Nepal. They are Raikar and Kipat. Raikar was the state’s land and Kipat was the land of certain community over which the state had no authority. The use right of the land in kipat system was given to a member of  aKipat-owning ethnic group by the chief of that group.

But after 1950, Raikar denoted a system in which individuals privately land and he/she pays the tax to the government and has a full right in terms of selling, using, inheriting, transferring, dividing, and leasing.
All other lands except the Kipat were the state’s property called “Raikar”. All other tenured forms of land were derived from Raikar[7].

The government gave grants of its land(i.e. Raikar land) to people in different forms. These grants were Birta, jagir, Guthi, Rakam, Rajya and Sera.
Types of Land Tenure System
Raikar system
Birta System
Guthi System
Jagir, Rajya and Rakam Systems
Kipat System
Birta

Birta System: The land achieved by certain individuals(e.g. religious teachers, priests, loyal soldiers etc) from the state (rulers) as a reward is called Birta. This land is exempt from tax. Certain individuals in the society would ingratiate themselves with the rulers. They would dedicate themselves to the advancement of the interests of the ruling class. As a result, they would receive certain amounts of land as a reward for their allegiance to the ruling class. The land thus received from the state is called Birta. But the state had the right to forfeit the grant. This system was abolished in 2016 BS/1959[8]
Guthi System:

When we talk about land tenure system in Nepal, we need to talk about present and land tenure system. Now there are only two types or forms of land tenure system in Nepal. They are raikar land system and guthi land system. But there were many forms of land tenure system in Nepal between 1950 and … They included Birta land system, Jagir land system, Rakam land system, Rajya land system, Kipat land system, and khaikar land system.

These various forms of land tenure system are discussed below:
Raikar land system: Raikar land system is the system under which “the state holds Raikar lands directly under its ownership and appropriates revenues from such lands for its own use”[9]Raikar land is the land used by individuals by paying tax to the state. The ultimate owner of Raikar land is the state though individuals who use it have a full right in terms of selling, using, inheriting, transferring, dividing, and leasing. Since Raikar land is in fact owned by the state, the state can take it away from them by giving them compensation if need be.
Guthi land system: Guthi land is the land given by the state to certain community for public religious and social use such as construction of temple, school etc.

Birta land system: Birta land is the land that is given by the state to such individuals who impress the rulers through their certain actions or behavior. These people included loyal army personnel, priests, teachers, brave individuals. They were rarely required to pay tax to the state for cultivating the land thus achieved. If they were required to pay tax, the amount was insignificant.  Some types of Birta land included Fikdarbirta(land given to the personnel who did great or praiseworthy job), MakhkhanBirta(the land given to the soldier who was killed in a war or in course of carrying out any assigned responsibility) and Sun Birta[10].

Jagir land system: Jagir land refered to the land that was given to individuals for their regular service to the government instead of salaries in the form of cash. The government personnel who ran the administration were given land as their salaries.

The system of granting land to the government staffs partly emerged from the lack of sufficient cash circulated in the then underdeveloped economy. It may be argued that the emergence of Jagir land system was a product of a dearth of enough cash to cover all the government expenses. For example, during the reign of Prithivi Narayan Shah, a soldier would earn around Rs. 76 a year[11].  The size of the army in 1792 was estimated by Kirkpatrick to be between 7,500 to 9,000. The size of the army in 1802 was estimated by Hamilton to be between 9,000 and 10,000. The strength of approximately nine thousand men in 1972 at the prevailing salary would cost about 45 lakhs rupees a year. The total annual revenue at that time was between 25 to 30 lakhs rupees[12].



The continuity of their right to cultivate the land thus granted depended upon the continuity of their willingness and readiness to contribute unpaid labor to the government. The state reserved the right to take such lands under its control if they stopped providing unpaid service to the state. The right to cultivate Rakam land could be transferred to their children if they continued to provide a unpaid service to the state like their parents.
Rajya land: It was the land given to the rulers in the defeated principalities by the state. In course of unification of small principalities by PN Shah many small principalities were defeated. The state provided the deafeated former rulers in these principalities with land as an effort to ensure their allegiance to the state in a new political context.

Kipat land system: It was the land owned by the Limbus of eastern Nepal. The right to use the land was given to a member of a Kipat-owning ethnic group. It was the land over which the state had no authority.
Khaikar land: It referred to the land registered under the name of a single person and divided among and cultivated by other individuals by paying the tax to its owner. Those who cultivate the land pay tax to the person under whose name the land is registered. This land system came to an end when cultivators became owners of the land on account of their having cultivated the land, i.e. when they enjoyed their tenancy right.
What is land tenure system?

According to Mahesh Chandra Regmi, great economic historian of Nepal, there were only two types of land tenure system in Nepal before 1950. They were Kipat system and Raikar system.
Raikar was the crown-land or state’s land but after 1950 Raikar denoted individual’s private property in which he/she pays the tax to the government and has a full right in terms of selling, using, inheriting, transferring, dividing, and leasing. Kipat was a type of community ownership on the land under which certain groups used to control it jointly and state had no authority. The land initially could not be sold or purchased but its use right was given to a member of that group by the chief of that group[13].All other lands except the Kipat were the state’s property called “Raikar”. All other tenured forms of land were derived from Raikar[14]



The government gave grants of its land(i.e. Raikar land) to people in different forms. These grants were Birta, Jagir, Guthi, Rakam, Rajya, and Sera[16].

The various land tenure sytems that came into existence in Nepal are described as follows:
Kipat system: it is land owned by the community and only members of the particular community could use it through their traditional rules. Landownership under the Kipat system was limited to certain communities of Mongoloid origin such as the Limbu, Rai, Danuwar, Sunuwar, and Tamang mostly living in the eastern and western hills of Nepal. This was abolished in 2023BS(1966 AD).

Raikar system: Under this system the state controlled the land but allowed private use of it for agricultural production if taxes were paid. The state also sold land to individuals and this led to the emergence of the private landownership system. Individual citizens can privately own the state land as Raikar land. As owners, they can sell or transfer the title to others. [17]

The state gave out land to tillers, called Mohis or tenants for cultivation. Such land is however subject to payment of certain fixed revenue to the government. Its ownership is also invariably retained by the state itself. Such land is called Raikar land which may therefore be defined as one which is subject to payment of some revenue to the state itself. This land system is known as Raikar system[18]
Under this system which was known as Raikar peasants cultivated the land in the capacity of tenants and made payments directly to the state. Frequently, the state granted Raikar lands to individuals or temples and monasteries thereby entitling the beneficiary to appropriate the payments made by the cultivator[19]

Birta system: Under this system, the system rewards individuals with land exempt from the tax. The Rana rulers and to some extent the Panchayat system gave an immense amount of land to the people close and loyal to the ruling class. As a result, elites of the society who served and helped advance the ruling class interests were entitled to such privileges.
The state had the right to forfeit the grant. This system was abolished in 2016 BS(1959AD)[20]
Land Act 1964 has been amended five times.


[1] Piers Blaikie, John Cameron, and David Seddon, Nepal in Crisis: Growth and Stagnation at the Periphery, (New Delhi: Adroit Publishers, 2007), p 57
[2] Mahesh C. Regmi, Land Ownership in Nepal(New Delhi: Adroit Publishers,1999), 16
[3]Badri Prasad Shrestha, An Introduction to Nepalese Economy(Kathmandu: RatnaPustakBhandar, 1966), 67
[4]Badri Prasad Shrestha, An Introduction to Nepalese Economy(Kathmandu: RatnaPustakBhandar, 1966), 68
[5]Badri Prasad Shrestha, An Introduction to Nepalese Economy(Kathmandu: RatnaPustakBhandar, 1966), 68
[6]Badri Prasad Shrestha, An Introduction to Nepalese Economy(Kathmandu: RatnaPustakBhandar, 1966), 68
[7]Regmi, 1976, 1978 quoted in Jaganathadhikari…
[8]Jaganathadhikari, p 23-24
[9] Mahesh C. Regmi, Land Ownership in Nepal(New Delhi: Adroit Publishers,1999), 123
[10] Book on Rural sociology and development by …not sajjal, not chakrapani but…
[11] Stiller, quoted in Ram SharanMahat, In Defence of Democracy: Dynamics and Fault Lines of Nepal’s Political Economy, (Kathmandu: Adroit Publisher, 2005), p 22
[12] Stiller, quoted in Ram SharanMahat, In Defence of Democracy: Dynamics and Fault Lines of Nepal’s Political Economy, (Kathmandu: Adroit Publisher, 2005), p 9-10
[13]Adhikari, Jagannath. 2008. Land reform in Nepal: problems and Prospects. Kathmandu:ActionAid, p22
[14]Mahesh Chandra regmi. 1976, 1978 quoted in Adhikari, Jagannath. 2008. Land reform in Nepal: Problems and Prospects. Kathmandu:ActionAid, p22

[15] Adhikari, Jagannath. 2008. Land reform in Nepal: problems and Prospects. Kathmandu:ActionAid, p22-23

[16] Ibid, p 23
[17] Ibid, p
[18] Shrestha, Badri, 1966. An Introduction to Nepalese Economy. Kathmandu:Ratna Pustak Bhandar, p 68
[19] Regmi, Mahesh Chandra. 1999. A Study in Nepali Economic Histroy, Delhi: Adroit Publishers,  p 26
[20] Ibid, p 23-24

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