Nepal Prime Minister Balendra Shah has sparked controversy after stating in parliament that both Nepal and India have encroached on each other’s territory in disputed border areas, including Lipulekh, Limpiyadhura and Kalapani. The remarks have drawn criticism from opposition parties in Kathmandu, prompted a clarification from Nepal’s Foreign Ministry, and led to a response from India.

Shah made the comments during a parliamentary session on May 31, saying both sides should engage in dialogue to resolve the long-standing border issue. He also noted that diplomatic notes had been exchanged with India and suggested involvement of historians and survey experts in resolving the dispute.

In Kathmandu, opposition lawmakers questioned the statement and demanded either evidence or a formal retraction. Some former officials also called for clarification, arguing that Nepal has no official record of state-level encroachment on Indian territory.

Nepal’s Foreign Ministry later clarified that Shah was referring to localised, informal cross-border situations arising from unclear boundary markers and shifting river courses, and not a formal territorial claim.

India’s Ministry of External Affairs rejected any suggestion of third-party involvement and reiterated that the issue of the Lipulekh Pass is bilateral. New Delhi maintained that its position on the region remains unchanged.

The disputed Lipulekh–Limpiyadhura–Kalapani area, near the India-Nepal-China trijunction, has long been a point of contention between the two countries, with both sides citing historical treaties and administrative claims.

Shah, who took office in March, has made his first major intervention on foreign policy through the remarks.