Rautahat, June 12 -- The Madhesh provincial government has suspended conditional, special and complementary grants to 25 local units that have failed to transfer the province's share of revenue collected under existing laws. The move could disrupt development projects and delay salaries for teachers, health workers and other public employees.

The provincial finance ministry said the local units collectively owe Rs622.9 million to the provincial treasury. Officials say repeated requests and warnings over the past two years have been ignored, forcing the government to take action at the end of the fiscal year.

"We repeatedly wrote to the local units and asked them to deposit the revenue, but they continued to ignore the requests," said Fi...