Nepal Court Pauses Controversial India Goods Rule

Kathmandu, May 17, 2026 Growing public anger over stricter border regulations in Nepal has now reached the country’s top court. In a significant development, Nepal’s Supreme Court has temporarily stayed the government’s rule imposing customs duty on goods worth over NPR 100 brought from India. The decision comes after widespread criticism from border communities who depend on daily cross-border trade for essential items. The rule had triggered chaos at several India-Nepal border checkpoints, where travellers carrying even basic household goods reportedly faced inspections and duty demands. Many people argued that the policy created unnecessary hardship for ordinary citizens and small traders who regularly purchase low-cost products from nearby Indian markets. Hearing petitions against the move, the Supreme Court issued an interim order preventing authorities from implementing the provision until further notice. Petitioners claimed the decision contradicted Nepal’s existing customs laws and unfairly targeted people living in border regions. The government had defended the measure as an attempt to control informal trade and increase revenue collection. The court’s intervention has provided temporary relief to thousands affected by the policy, while also reigniting debate over Nepal’s trade management and border regulations with India. The final verdict is now expected to play a crucial role in shaping future cross-border trade rules between the two neighbouring countries.