(1) In the industrial zone, special economic zone and industrial corridor to be established after the commencement of this Act, no residential building or other building of any kind can be built or settled within the area and distance specified by the Government of Nepal by publishing a notice in the Nepal Gazette. In the same way, industry cannot be established in areas designated as residential areas and special purposes by the prevailing law.
(2) In the event that a residential building or other building or a settlement is not allowed to be built on someone's private land within the specified area and distance as per sub-section (1), the Government of Nepal shall complete the prescribed process within the specified period and pay reasonable compensation to the concerned person.