Kathmandu, May 3 -- The federal government's decision to task local governments with removing encroachments from public and government land and managing the relocation of landless squatters has reignited a longstanding and unresolved issue. While the move is framed as an attempt to bring the process closer to communities, it has raised serious concerns over whether municipalities have the legal authority, financial resources and institutional capacity to shoulder such a complex responsibility.

The circular, issued by the Ministry of Federal Affairs and General Administration on Thursday, directs all 753 local units (metropolises, sub-metropolises, municipalities and rural municipalities) to identify genuine landless squatters, manage the...