Prime Minister Balendra Shah drew criticism after claiming that territorial encroachments between India
June 1, 2026: A political controversy erupted in Nepal after Prime Minister Balendra Shah made remarks on the long-standing India-Nepal border dispute during his first appearance in the ongoing parliamentary session. Addressing lawmakers, Shah said the dispute over the Lipulekh Pass could be resolved through diplomacy and revealed that his government had reached out to the United Kingdom and China, arguing that British involvement was relevant because the dispute dates back to the era of British India.
The controversy intensified when Shah stated that border encroachments were not one-sided. He claimed that after becoming prime minister, he learned that not only had India allegedly encroached on Nepalese territory, but Nepal had also occupied Indian land in several places. He urged both countries to examine the facts objectively and work together as friendly neighbours to resolve the issue through dialogue.
His remarks triggered immediate criticism from opposition lawmakers and political leaders, who demanded evidence or a withdrawal of the statement. Nepal’s Foreign Ministry later clarified that Shah was referring to encroachments in “no-man’s land” and cross-border occupation issues rather than formal territorial claims. The dispute over Lipulekh, along with Kalapani and Limpiyadhura, remains a sensitive issue in India-Nepal relations, with both countries maintaining their respective claims based on differing interpretations of the Sugauli Treaty.