Nepal Prime Minister Balendra "Balen" Shah has triggered a political controversy after stating that not only has India encroached on Nepalese territory, but Nepal has also occupied Indian land in several places. His remarks, made during his first address to Parliament since becoming Nepal’s youngest Prime Minister, have reignited discussions around the long-standing border dispute between the two neighbouring countries.

Speaking in Parliament on Sunday, Shah referred to the unresolved dispute over Lipulekh, Limpiyadhura and Kalapani. While acknowledging that the issue remains a sensitive subject in Nepal-India relations, he stressed the need for a fact-based approach involving experts from both countries.

"You will be surprised to know a fact that I have learnt recently, only after becoming Prime Minister. India has not only encroached Nepali territory, but Nepal has also encroached Indian territory in many places," the 35-year-old leader said.

"Now both countries should study the facts and sit together as friends and resolve the issue," he added.

Shah also informed lawmakers that Nepal had raised the border issue with China and the United Kingdom. He cited Britain's colonial-era role in shaping regional boundaries as a reason for involving the UK in discussions.

However, his comments quickly drew attention and criticism, prompting Nepal’s Ministry of Foreign Affairs to issue a clarification later the same day. The ministry explained that the Prime Minister’s statement about Nepal "encroaching" Indian territory referred to situations involving no-man’s land and cases of cross-border occupation rather than any official territorial takeover.

According to the ministry, there are areas where land currently used by people on the Indian side may actually fall within Nepal’s territory, while some land being used by Nepalese citizens may fall within India. “What the Prime Minister said about Indian land lying on the Nepali side is related to cross-border occupation,” the statement added.

The ministry further stated that technical teams from both countries are actively engaged in repairing and constructing boundary pillars. They are also collecting data related to the Dasgaja areas, a strip of land along the border traditionally used for maintenance and access. These efforts are part of ongoing work to address long-standing cases of cross-border occupation and improve border management.

Despite the clarification, Shah’s remarks sparked strong reactions from opposition parties in Nepal. Several lawmakers questioned the basis of his statement and demanded evidence. Basana Thapa of the Nepali Congress and Ramesh Malla of the Nepali Communist Party objected to the Prime Minister’s comments in Parliament. They called for the remarks to be removed from the official record unless proof could be provided. Former Nepal Foreign Minister Pradip Gyawali also reportedly sought an apology from Shah.

Experts familiar with the Nepal-India border issue also challenged the Prime Minister’s claim. Buddhi Narayan Shrestha, a well-known geographer and Nepal-India border expert, stated that Nepal has never encroached on Indian territory. He noted that in some regions, farmers from both countries have used land across the border due to missing boundary pillars and the ease of movement between communities. However, he maintained that such situations do not amount to official encroachment.

Former Nepalese Ambassador to India Nilambara Acharya also dismissed the suggestion that Nepal had occupied Indian land. He said Shah appeared to have no information supporting such a claim. Acharya pointed out that nearly 97 per cent of border issues between Nepal and India have already been resolved.

He further explained that while overlapping land use exists in some areas because of missing border markers, there is no official record showing Nepal has encroached on Indian territory. His remarks were made while speaking to a Nepali media outlet.

Another former ambassador to India, Deep Kumar Upadhyay, shared a similar view. He said the issue had never been formally raised by India and had not emerged during official studies or bilateral discussions.

"India has also not raised this issue on record. So far, we have conducted studies, but this matter has never surfaced in official discussions," he told a Nepali news portal, adding that the context of the Prime Minister's statement remained unclear.

The controversy comes only weeks after Nepal formally objected to the Kailash Mansarovar Yatra route through Lipulekh. Kathmandu sent diplomatic protests to both India and China over the matter.

At the time, Nepal’s Ministry of Foreign Affairs reiterated its position on the disputed territories. "The Government of Nepal remains clear and firm that, as per the 1816 Sugauli Treaty, Limpiyadhura, Lipulekh and Kalapani are integral parts of Nepal," the ministry said.

India rejected Nepal’s objection and described the claim as a "unilateral artificial enlargement." New Delhi said Nepal’s position was not acceptable and reiterated its stance that the issue should be addressed through dialogue.

Nepal’s Foreign Ministry spokesperson Lok Bahadur Chhetri stated that Kathmandu remains committed to resolving the dispute through diplomatic channels.

The border dispute between India and Nepal has remained unresolved for decades. Both countries claim Lipulekh, Limpiyadhura and Kalapani. India maintains that these areas are part of Uttarakhand, while Nepal considers them part of its sovereign territory.

The three disputed locations are strategically important because they lie near the tri-junction where India, China and Nepal meet.

The dispute intensified in June 2021 when the government led by KP Sharma Oli released a new political map showing Lipulekh, Limpiyadhura and Kalapani as part of Nepal. India strongly rejected the move, calling it a "unilateral cartographic assertion" and urging Nepal to respect India's sovereignty and territorial integrity.

Shah’s latest remarks have once again brought the sensitive border issue into focus. While Nepal’s government has attempted to clarify his comments, the statement has already sparked political debate at home and renewed attention on one of the most complex issues in Nepal-India relations.