Nepal to nationalise king's property

Feb 26, 2007, 10:15 GMT

Kathmandu - The Nepalese government is to nationalise property belonging to the king and the royal family, officials said Monday.

A meeting of the Nepalese cabinet concluded that all property belonging to King Gyanendra either inherited or amassed after assuming the throne nearly six years ago will be nationalised.

The property in the king's name includes those belonging to late King Birendra and Queen Aishwarya who were killed in a palace massacre blamed on their son Crown Prince Dipendra in June 1991.

The issue of King Gyanendra's property has been a controversial one in Nepal after he dismissed calls for the former king and queen's property to be placed in a trust, instead placing them under his own name.

The ministerial meeting also concluded that the seized property will be handed over to a trust.

King Gyanendra has shares in luxury hotels, a major cigarette factory and other industries. He was involved in private business before he became the king.

However, recent media reports in Nepal said he had sold most of his shares in major businesses, possibly in anticipation of the government move.

The government action is the latest in a series of measures aimed against the embattled monarch.

On Sunday, the interim legislature criticised the government for failing to take action against the king as directed by the MPs for his address in which he defended the power grab in 2005.

Following the mass movement in April 2006, which toppled his government, King Gyanendra has been stripped of executive powers and all references to him have been removed from government offices.

Earlier this year, the government decided to remove his portrait from all new bank notes.

A constituent assembly formed after the elections in mid-June will vote to decide whether Nepal remains a monarchy or becomes a republic.