(1) Notwithstanding anything contained in section 11, a letter of intent to establish an educational institution shall not be granted in the following cases:-
(A) To conduct any program of the related subject until a hospital with at least three hundred beds for medical and one hundred beds for dental and nursing is operated for the study and practice of students.
(b) Failure to fulfill other criteria prescribed by the Commission.
(2) Notwithstanding anything written in sub-section (1), no letter of intent shall be granted to establish and operate an educational institution for conducting graduate programs in medical, dental and nursing subjects within the Kathmandu Valley for ten years from the date of commencement of this Act.
(3) In the case of educational institutions that have received the letter of intent and completed the infrastructure at the time of commencement of this Act, the following may be done:-
(a) if the educational institution concerned wishes to transfer the property to the Government, the Government may assume ownership on payment of reasonable compensation, or
(b) The Government of Nepal will provide incentive facilities if the concerned educational institutions want to transfer to the areas designated as priorities by the Commission.