The government is struggling to collect over Rs 800 million in rent arrears from industries operating within 10 industrial zones, following a six-year dispute over revised rates. The Industrial District Management Limited (IDML) introduced significantly higher rent rates on 16 July 2018, which were opposed by industries claiming the hikes were excessive and unfair.

The High Court of Patan had authorised IDML to enforce the revised rates last year. However, on October 29, 2024, the Supreme Court ordered a rehearing, citing procedural errors in the High Court's decision. This legal deadlock has stalled efforts to collect the overdue rent, which had reached Rs 680 million by the end of fiscal year 2023/24.

The Federation of Nepalese Industrial Zones, led by its president Ramheera Pathak, stated that industries would not comply with the increased rates until the Supreme Court issues a final verdict. Pathak accused IDML of using pressure tactics such as withholding lease renewals and halting ongoing projects.

Under the revised structure, rents for non-productive industries in the Balaju Industrial Area jumped significantly—from Rs 30,000 to Rs 120,000 per ropani annually for the first category, with similar increases in other categories. Despite these changes, most industries have continued to pay the earlier rates set in 2015.

To resolve the issue, the industries have demanded option for payment in instalments, late fee waivers, and additional concessions. While IDML insists on collecting dues based on the High Court’s earlier decision, they have acknowledged the industries’ reluctance amid ongoing legal uncertainty.