By Deepak Joshi Pokhrel
On the early morning of April 25, squatters living along the riverbanks of Kathmandu woke up to an incident they had hardly expected. Their settlements were being demolished by bulldozers under the instructions of the Balen-led government. The news spread like wildfire on social media, triggering divided opinions on the demolition.
Ever since Balen Shah, popularly known as Balen, came to power, he has been making headlines for his austerity measures aimed at improving governance and ending systemic corruption. Last week, however, his government undertook a surprising move: demolishing squatter settlements along Kathmandu’s riverbanks.
Squatter settlements along the riverbanks of the Kathmandu Valley have grown rapidly since the 1980s, mainly due to internal migration to Kathmandu and the decade-long civil conflict. Another major factor was the collapse of the once-thriving carpet industry, which had generated employment for many migrants. Its downfall left many without stable incomes or the means to secure formal housing. These overlapping economic and social crises pushed many people toward informality, making riverbanks their last refuge.
Over time, these so-called illegal spaces evolved into far more than temporary shelters. What began as makeshift huts gradually transformed into permanent structures, with bamboo frames replaced by bricks and concrete slabs. Along with physical changes, the intentions of some settlers also changed.
Eventually, these settlements attracted the attention of land mafias and political actors. The reason was simple: these areas are located in the heart of the city and are worth millions. Reports suggest that many people living in these settlements are not genuinely landless. Informal transactions—including buying, selling, and transferring plots—have reportedly taken place. In addition, these settlements became vote banks for previous governments, which often avoided addressing the issue.
Although squatters are commonly called Sukumbasi, the term carries negative connotations and is not preferred by many residents. It would be unfair to claim that no genuine squatters exist. A 2021 government study found that only 20 percent of the 4,000 families living along Kathmandu’s rivers were genuinely landless. This means the majority owned land elsewhere, either in Kathmandu or other parts of the country.
Still, these settlements exist because formal systems have failed. When affordable housing is inaccessible, livelihoods collapse, and displacement remains unaddressed, people inevitably seek alternative means of survival. This is a clear reflection of governance failure.
Critics condemned the demolition as harsh and insensitive, arguing that the government acted hastily without ensuring proper rehabilitation. However, the government had issued a final deadline of 7 PM on April 24 for residents to vacate. At the same time, authorities were reportedly working to distinguish genuine landless families from fraudulent claimants.
During his tenure as mayor of Kathmandu Metropolitan City, Balen had attempted similar evictions but failed due to political protection and land mafia influence. This time, as head of a nearly two-thirds majority government, he faced less political resistance.
While many across the country have welcomed the demolition, the real challenge now lies ahead.
The government must immediately rehabilitate genuine squatters, especially elderly citizens, pregnant women, and people with disabilities. Many saw homes built over years reduced to rubble, along with their savings and emotional attachments.
The issue of Sukumbasi is multidimensional and requires a multipronged solution. Nepal must revisit urban policies with greater emphasis on inclusion and affordable housing. Rather than simply removing informal settlements, the government must demonstrate equal urgency in rehabilitation.
Demolition may be immediate, but rehabilitation cannot wait.
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