KATHMANDU: The Kathmandu Metropolitan City has demolished a structure built on land owned by Nepal Scouts in Lainchaur.

The building had been occupied by a company affiliated with former Energy Minister and Nepali Congress leader Deepak Khadka.

The move came after Nepal Scouts issued a public notice on October 6, giving Khadka Land Development Company seven days to clear outstanding dues. When the company failed to comply, city authorities intervened with bulldozers on Wednesday.

The disputed property, covering about three ropanis, belongs to Nepal Scouts — an organization under the Ministry of Youth and Sports. Khadka’s company reportedly owes more than Rs 35 million in unpaid rent for its use of the land.

The company had signed a 10-year lease agreement with Nepal Scouts in 2008, which expired in 2018. After a prolonged legal battle, the Patan High Court ruled in favor of Nepal Scouts on June 27, 2021, dismissing the company’s claim to the property.

After the court verdict, Nepal Scouts had sealed the structure and issued another public notice on November 15, 2015. The organization said in its recent statement that the company’s prolonged non-payment had caused irreparable loss to the institution.