Land in Jhapa remains in derogatory possession (land possession that is ultimately unrecognised by any entity). For instance, families within the Phulbari Settlement of Ward No. 13 of Mechinagar Municipality have occupied their locations for the last 25 years; in 1991 through 2013.
Champa Kumari Rajbanshi built her settlement next to the Phulbasa River in 1999, but despite multiple applications and a survey taken of the area, she has not yet received recognition from the government for the construction of her settlement and has not received a deed to the land in her family’s name, leaving her children and extending family in a similar situation to her (the children's birth father passed away seven years ago).
Similarly, Phulmati Rajbanshi and her family have built their own homes, yet they do not have any legal title to these properties. They feel disillusioned after having made multiple attempts at obtaining legal titles, only to have those attempts met with continual delays, as well as the discontinuance of the Land-Related Problem Resolution Commission.
The 18-Katthe settlement houses 41 families who also await land deeds, many of whom have lived on the land for decades. Goma Katawal, for example, purchased four dhur of land last year and installed utilities, but still lacks an official title.
Across both settlements, roughly 60 families remain in limbo, having repeatedly followed procedures including form submission, land surveys, and visits to municipal offices. Chairman of Mechinagar ward 13, Krishna Raj Sigdel, estimates there are approximately 500 landless squatters, Dalits and informal settlers residing within Mechinagar ward 13.
In July 2025, it was recorded that there were an estimated 50,700 landless squatters, Dalits, and informal settlers, according to the Land Related Problem Resolution Commission, which is now no longer in existence. The number is expected to continue increasing daily.
In September, the interim government's sudden dissolution of the commission resulted in a complete halt to the registration and distribution of land, and left hundreds of applications pending. Former commission chairperson Madan Adhikari said that the process of land registration was effectively stopped.
Land-rights activists claim that the recurring dissolution and formation of these kinds of commissions by successive governments has created a cycle of hardship for landless families. The interim government led by Sushila Karki dissolved the commission that was created by the previous KP Sharma Oli administration, citing its large size and not having a mandate to distribute land, and subsequently left thousands of such families, including those in Jhapa, waiting indefinitely for ownership of land.