Nepal's Prime Minister Balendra Shah triggered a political storm on Sunday, 31 May when, during his first-ever address to the Nepal Parliament, he acknowledged that Nepal has also encroached on Indian territory in multiple locations — a startling admission that drew immediate fire from opposition lawmakers and demands for specifics.

The Admission That Shook Kathmandu

Shah made the remarks while fielding questions about India's alleged encroachment of the disputed Limpiyadhura, Lipulek, and Kalapani region — territories both India and Nepal claim sovereignty over, though the area has been under effective Indian control for decades.

'After becoming Prime Minister, I came to know that not only has India encroached on Nepal's land, but Nepal has also encroached on India's land in multiple places,' Shah said. 'Both sides should sit down and look into the matter.'

Notably, Shah declined to specify where Nepal had encroached on Indian land, prompting opposition lawmakers to immediately press for details. Some members went further, urging Speaker DP Aryal to expunge the Prime Minister's remarks from the parliamentary record.

Diplomatic Channels Already Engaged

On the broader border dispute, Shah confirmed that Nepal had already sent an official diplomatic note to India and received a formal response. He outlined the contours of India's reply, stating that both governments had agreed in principle to form joint teams comprising historians, surveyors, and territorial experts to seek resolution through structured talks.

'The response states that both governments will form teams comprising historians, surveyors and experts familiar with the territory and seek a resolution through table talks,' Shah said.

He also addressed a separate question on the India-China agreement to route Indian pilgrims to Kailash Mansarovar through the disputed Lipulek area, reiterating that Nepal had formally communicated its position to India on this matter as well.

UK Brought Into the Frame

In what is reportedly the first open acknowledgement of its kind, Shah disclosed that Nepal had also engaged in diplomatic discussions with China and the United Kingdom regarding the border dispute with India.

'We have spoken not only with India and China but also with the UK government. Our view is that the UK should also take an interest, as the issue dates back to the period when British India left the region,' Shah said.

This comes amid a broader diplomatic backdrop: the border dispute is widely regarded as one of the key irritants in India-Nepal bilateral relations, with the contested territories appearing on Nepal's revised official map issued in 2020.

Political Context and What Comes Next

Shah's remarks carry added significance given their timing. Rabi Lamichhane, President of Nepal's ruling Rastriya Swatantra Party (RSP), was scheduled to visit India on 1-2 June, just days after the parliamentary address. Meanwhile, a proposed visit by Prime Minister Shah himself to India remains uncertain.

Shah had previously drawn criticism for repeatedly bypassing Parliament despite opposition demands — making Sunday's address his first direct engagement with lawmakers since assuming office. Whether his candid disclosures ease or complicate the diplomatic path ahead remains to be seen.