Nepal’s Landless Squatters Push Back Against Balendra Shah’s Vision of a ‘Clean’ Nation

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In a significant show of defiance, more than 25,000 landless squatters from 22 districts marched through the streets of Butwal in southern Nepal on Sunday, turning what was once a local grievance into a national political challenge for Prime Minister Balendra Shah’s young government.

Organised by the Landless People and Un-managed Squatters Struggle Committee, the rally in Lumbini province’s commercial hub marked one of the largest coordinated protests since Mr Shah, the former rapper-turned-mayor of Kathmandu, assumed power in late March with a commanding parliamentary majority. Demonstrators chanted slogans against “bulldozer terror” and demanded an immediate end to evictions without guaranteed rehabilitation.

The protest reflects a growing backlash against the government’s aggressive nationwide campaign to clear informal settlements, which began in earnest in late April. What Mr Shah presents as a long-overdue effort to reclaim public land, restore riverbanks, and fulfil his promise of urban modernisation has rapidly become a flashpoint, exposing deep fault lines in Nepal’s chronic land inequality.

A Popular Mandate Meets Harsh Realities

Mr Shah rose to prominence on a wave of anti-establishment sentiment, particularly among urban youth frustrated with decades of political dysfunction. As Kathmandu mayor, he earned praise for clearing encroachments and improving public spaces. Now, as prime minister, he is scaling up that approach across the country, targeting settlements often located on riverbanks, public forests, and government land.

Authorities argue the drive is necessary to mitigate environmental risks — many settlements are in flood-prone zones — and to begin addressing the needs of genuine landless families through systematic verification. Yet critics, including opposition parties, rights groups, and now a broad cross-section of the landless community, accuse the government of moving with undue haste, often deploying bulldozers with minimal notice and inadequate alternatives.

In Kathmandu Valley alone, thousands of structures have been demolished, displacing an estimated 15,000–20,000 people. Many have been shifted to temporary holding centres, but concerns remain about those left unaccounted for. Nationally, the government’s actions are said to have affected hundreds of thousands, with some activists claiming over a million families have been impacted directly or indirectly.

Judicial Warning and Political Solidarity

The government’s actions against unauthorised settlements have continued despite a clear warning from Nepal’s Supreme Court. On 4 May, a division bench directed the government not to evict squatters or informal settlers without proper legal procedures and a credible rehabilitation plan. The court highlighted risks to constitutional rights, including housing, education, and health, and cautioned against a potential humanitarian crisis.

Undeterred, the demonstrations have spread. Twelve political parties, spanning from the Nepali Congress to communist groups, have extended solidarity, creating an unusual united front against the new administration. UN experts have also urged Nepal to halt mass forced evictions and engage in genuine dialogue with affected communities.

For a government that swept into power promising decisive reform and a break from the past, the land issue is proving an early and uncomfortable test. Mr Shah’s administration had pledged to resolve the problems of landless citizens within 1,000 days, including through digital verification and planned resettlement. Yet the speed of the demolition drive has outpaced visible progress on rehabilitation, fuelling accusations of heavy-handedness.

Deeper Crisis of Land and Belonging

At its core, the protests highlight Nepal’s longstanding failure to tackle landlessness, particularly among Dalits, indigenous groups, and rural migrants who have drifted to urban fringes and riverbanks over decades. Successive governments have repeatedly promised land reform, only for commissions to be formed, dissolved, or politicised.

Mr Shah’s approach — bold and visible — appeals to those tired of seeing public land encroached upon. But for the landless, many of whom have lived in these settlements for years or even generations, it feels like punishment for systemic neglect. “Being landless is not a choice, it is a compulsion,” has become a rallying cry.

As the Butwal march concluded with corner meetings and vows of continued resistance, the message to Singha Durbar was unmistakable: Nepal’s poorest citizens will not be easily swept aside in the name of beautification. How Prime Minister Shah balances his modernisation agenda with the constitutional imperative to protect the vulnerable may well determine the trajectory and legitimacy of his ambitious premiership in the months ahead.