The government has revoked its decision to monitor land ceiling -- that tightened transfers of land ownership to housing companies -- and even agreed to simplify the ownership transfer process for them. Department of Land Reforms and Management (DoLRM) on Friday issued a fresh circular to the Land Tax Offices (LTOs), annulling its previous instruction and directing them to continue regular transactions as in the past. This has paved way for resumption of regular ownership transfers of land in the name of housing companies. On Wednesday, DoLRM had instructed all LTOs not to register ownership in the name of the housing companies, unless they produce Land Reforms Office´s (LRO´s) clearance that their landholding does not exceed the ceiling as stipulated in Land Revenue Act (LRA). LRA bars companies from holding more than 25 ropanis (3.14 acre) of land in the Kathmandu Valley, 80 ropanis (10.05 acre) in the hills and 11 bighas (17.97 acre) in Tarai districts. The ceiling, however, is not applicable for the companies who have received government´s permission, as per the Industrial Enterprise Act. The DoLRM cited enforcement of law and introducing fair play in the realty business as two major reasons behind tightening the deals of housing companies. But the decision had instantly brought transactions of registered developers to a grinding halt, spurring heat from them. Land and housing developers instantly formed a 501-member protest committee and 33-member main steering committee on Thursday and even announced of not paying the banks´ loans until and unless the government revoked the decision. Holding an assembly, Nepal Land and Housing Developers Association (NLHDA) had also decided to defy DoLRM directives, which asked them to furnish details of their landholding at the LROs so that the office could prior crosscheck their landholding claims and issue clearance for swift transactions. In response, they had asked DoLRM to either simplify registration procedures within five days or face nationwide closure of LTOs. “We are glad that the government responded to our call positively,” said an official at NLHDA. He told myrepublica.com that the association has already informed its members about the latest development and requested them to resume normal businesses.