Nepal PM Sparks Controversy by Admitting 'Encroachment' on Indian Territory
Theo Sarah Shamim (Al Jazeera)
Nepal Prime Minister Balendra Shah's parliamentary admission that Nepal has also encroached on Indian territory has sparked outrage and revived a centuries-old border dispute. Analysts warn the remarks could undermine Nepal's position in future bilateral talks over the contested Limpiyadhura, Lipulekh, and Kalapani regions.
On June 1, Nepal Prime Minister Balendra Shah delivered his first address to the Federal Parliament since taking office, provoking outrage among lawmakers by declaring that Nepal has also encroached upon Indian territory. This marks a departure from Nepal's usual stance, which has focused on criticizing its larger neighbor for seizing its land.
“You will be surprised to learn a fact I only discovered recently, after becoming prime minister: not only has India encroached on Nepalese territory, but Nepal has also encroached on Indian territory in many places,” Shah said. He did not specify which areas of India have been encroached upon by Nepal. The prime minister called for the two sides to “jointly study the facts, sit down as friends, and resolve the issue.”
The border dispute between Nepal and India spans centuries, centering on the Limpiyadhura, Lipulekh, and Kalapani regions. The conflict originates from the 1816 Sugauli Treaty, signed between Nepal and British colonizers to define the western border with India. According to Nishchal Pandey, Director of the Centre for South Asian Studies in Kathmandu, the treaty did not clearly identify the source of the Kali River — the boundary demarcation — and lacked a map, leading to long-standing sovereignty disputes over the three areas.
India rejects Nepal's claims, citing tax records from the 1830s from the state of Uttarakhand that show the region was historically administered by India. Indian troops have been stationed in Kalapani since the 1962 war with China, during which Nepal adopted a neutral stance.
Shah, 35, was sworn in as prime minister on March 27 of this year. He joined the Rastriya Swatantra Party (RSP) in December 2025, after youth protests toppled the previous government. Previously, he served as Kathmandu's mayor from 2022, gaining notoriety for a controversial crackdown on street vendors.
Shah's remarks drew sharp criticism from the opposition. Lawmaker Basana Thapa (Nepali Congress Party) demanded clarification, suggesting that if the statements were untrue, they should be stricken from the record. MP Ramesh Kumar Malla (Communist Party of Nepal) called them “an insult to national territorial integrity.” Former Nepalese ambassador to India Nilambar Acharya rejected the prime minister's claim: “Not a single inch of Indian land has been encroached upon by the Nepalese state.”
Nepal's Ministry of Foreign Affairs later issued a statement clarifying that Shah referred to “technical, local mismatches” between legal boundaries and actual land use — such as Nepalese citizens farming or living on land belonging to India and vice versa. The statement emphasized a commitment to resolving disputes through diplomatic channels and bilateral dialogue.
Former Prime Minister Khadga Prasad Sharma Oli strongly protested India's inauguration of an 80-kilometer Lipulekh road in May 2020, connecting New Delhi to the Kailash-Mansarovar pilgrimage site. Most recently, in May 2026, India announced the resumption of religious pilgrimages through Lipulekh Pass, suspended since 2020 due to the COVID-19 pandemic, prompting Nepal's objection.
Analysts believe Shah's remarks could hinder Nepal in bilateral negotiations. “An off-the-cuff remark on a sensitive diplomatic issue in parliament could have serious consequences… It will be a burden Nepalese negotiators will have to carry,” said Anurag Acharya, a political analyst in Kathmandu.
