Forest Act 2049 (1993).

This Act provides for the development and conservation of forest and for the proper utilization of forest products.
Chapter 1 of the Act defines, among other things, two broad categories of forests: private forests and national forests. The latter term refers to all forests in Nepal which are not private, and includes waste and uncultivated lands surrounded by adjoining forests. There are five types of national forests: government-managed, protected, community, leasehold, and religious. Chapter 2 deals with the demarcation of national forests by District Forest Officers. Procedures are set forth for the acquisition of private land and houses during the process of demarcation, and the payment of compensation to their owners. Private land outside of national forests may not be acquired for such purposes except if it is essential to do so for the protection of the national forest, and lands above a certain size can only be acquired with the landowner's consent. No such restrictions apply to the acquisition of private lands entirely surrounded by national forest. Persons may not acquire rights in national forests except by permit or licence from the Government, and any such rights cannot be alienated. Chapters 3 through 7 set forth provisions concerning each of the five types of national forests. Government-managed forests and all forest products therein are owned by the Government. All actions within a Government-managed forest are to be in accordance with an operational plan prepared by the Forest Department. Protected forests are areas which the Government feels are of special environmental, scientific, cultural or other importance. Community forests are areas of national forest "handed over" to a user group, which is entitled to develop, conserve, use and manage such forest, and sell and distribute the forest products by independently fixing their prices.
Leasehold forests are for producing raw materials for industry or for commercial purposes, for agro-forestry and certain other purposes. Corporate bodies, industries or communities may be lessees, and the Act sets forth application and approval procedures. Religious forests are areas handed over to religious bodies, groups or communities for development, conservation and use in connection with religious activities, and not for commercial purposes. Chapter 8 concerns private forests. An owner of private forests may develop, conserve and manage it or use, sell and distribute its products as he likes. Chapter 9 deals with the formation of users' groups, their registration and legal personality. Chapter 10 sets out provisions relating to unclaimed and stray timbers. Chapter 11 sets forth offences and penalties.
Chapter 12 deals with the powers of forest officers to investigate offenses and to make arrests. Finally, Chapter 13 contains miscellaneous provisions, including a statement that ownership of all national forests remains vested in the Government.