(1) When the forest is granted, the ownership of the trees in it shall be owned by the Government of Nepal. Provisions for the management and protection of such trees should be mentioned in the action plan and the lessee should take charge of such trees.
(2) For the purposes of clauses (a) and (b) of Section 31 of the Act, when providing a recognized forest, a bond or bank guarantee can be taken from the lessee of such recognized forest after evaluating the nature of the forest and evaluating the trees there. But such bond will not be taken when providing confession forest to the community below the poverty line.
(3) During the felling of trees as per sub-rule (1), the forest yield received by the lessee under the supervision of the district forest office will be sold for up to five years at the price specified in Schedule-2 for the first five years. Sales will be distributed.