Section 3
Registration Of Land In The Name Of Peasant
3. Registration of land in the name of peasant : The right of the  landowner to the Ukhada land being cultivated by a peasant in a manner to pay the rent to the landowner at the commencement of this Act, and such land shall be registered in the perfect (Numbari) land in the name of the peasant in such manner as prescribed.
Provided that,
(1) 3 If the peasant is a foreign citizen or is later held to be a foreign citizen, the Ukhada land tilled by him
or her shall be registered in the name of the Government of Nepal, and the Government of Nepal may sell and distribute such land to landless squatters who are citizens of Nepal, on any terms and conditions. If the landowner has not got any compensation out of the compensation receivable by the landowner in relation to such land pursuant
to this Act, all such compensation and the remaining amount to be set by deducting compensation already received from the peasant to the landowner in lump sum or in five equal installments.
(2) If the peasant does not pay the amount of compensation required to be paid in lump sum or
for the first installation in accordance with proviso (b) to Sub-section (1) of Section 4, the land shall
not be registered in his or her name.