Laws on Drugs and Alcohol in Nepal: Narcotic Drugs Act, Liquor Act, DUI Penalties & Enforcement

Nepal treats drugs and alcohol as two tightly regulated areas of public health, criminal law, and local-government licensing. The laws in force in 2026 (FY 2082/83) are built around four statutes: the Narcotic Drugs (Control) Act, 2033 (1976), the Liquor Act, 2031 (1974), the Muluki Criminal Code, 2074 (2017), and the Motor Vehicles and Transport Management Act, 2049 (1993). Between them they cover production, sale, possession, transport, advertising, drunk driving, and the penalties that run from a one-month jail term and NPR 1,000 fine for minor possession up to life imprisonment and NPR 25 lakh for large-scale trafficking. This guide explains every core rule, the enforcement architecture, and the pending legislative proposals — all cited to the primary texts on lawcommission.gov.np.

The Four Core Laws

Narcotic Drugs (Control) Act, 2033 — Nepal's Primary Drug Law

The Narcotic Drugs (Control) Act, 2033 is the principal statute. It replaced the earlier tolerant regime (Nepal had legally sold cannabis through government licensed shops until 1973) and continues to control every category of narcotic drug. Section 3 classifies "narcotic drugs" to include cannabis (gaanja, charas, hashish), opium, morphine, heroin, cocaine, and all manufactured amphetamine-type stimulants.

Prohibited Acts (Section 4)

Section 4 of the Act prohibits every one of the following without a licence granted by the Government of Nepal:

• Cultivation of the cannabis plant, opium poppy or coca plant.

• Production, manufacture, preparation, refinement or extraction of narcotic drugs.

• Sale, purchase, storage, possession, transport or transfer of narcotic drugs.

• Import into or export out of Nepal.

• Consumption of narcotic drugs.

Penalty Schedule under Section 14

Section 14 (as amended) sets penalties on a sliding scale based on the drug type and the quantity. The structure for cannabis/hashish is:

For hard drugs the schedule is substantially heavier:

Under Section 15, attempt and abetment carry the same penalty as the completed offence. Under Section 24, property used in or acquired from the offence is liable to confiscation.

Special Protections and Exemptions

• Medical and scientific use — Section 7 allows narcotic drugs for medical, scientific, and industrial use under licences granted by the Ministry of Home Affairs and the Department of Drug Administration.

• Ritual exemption — the Act historically tolerated cannabis use on Shivaratri at Pashupatinath. This tolerance is operational custom; it is not a statutory exemption, and technical illegality remains.

• Addicts — Section 4B permits voluntary registration at a drug-treatment centre and allows the court to substitute treatment for punishment in suitable consumption cases.

Liquor Act, 2031 — Nepal's Alcohol Law

The Liquor Act, 2031 (1974) regulates every stage of the alcohol trade. It is supplemented by the Liquor Rules, 2033 and by excise notifications issued each year by the Inland Revenue Department under the Excise Act, 2058.

Key Rules under the Liquor Act

• Licence required (Section 4) — no person may manufacture, bottle, sell, transport or store liquor for sale without a licence. Manufacturing licences are issued by the Department of Industry; retail and wholesale licences are issued by the local municipality/rural municipality under the Local Government Operation Act, 2074.

• Legal drinking age 18 (Section 12) — sale or supply of liquor to any person below 18 years is prohibited and punishable.

• Pricing and labelling (Sections 7–8) — every bottle must carry a Department of Food Technology approved label and the excise-fixed Maximum Retail Price.

• Hours and location restrictions — retail sale is prohibited within 50 m of schools, colleges, hospitals and religious places under the 2017 Kathmandu Metropolitan City byelaw and similar local rules elsewhere.

• Public consumption — drinking in public places (parks, roads, public transport, government offices, educational institutions) is prohibited under Muluki Criminal Code 2074 §117–118 read with the Local Government Operation Act.

• Advertising ban — the Directive on Liquor and Tobacco Advertising Control 2055 bans all mass-media advertisement of alcohol. Print, radio, television and outdoor advertising of liquor is prohibited in Nepal.

Penalties under the Liquor Act

No-Alcohol Days in Nepal

Under Government of Nepal notifications, the following days are dry days on which retail sale of alcohol is prohibited across Nepal:

• Election day (federal, provincial, local and by-elections) — prohibition begins 48 hours before polling and ends when polling closes, under Election Commission directive.

• National days of mourning declared by the Government.

• Certain municipalities (Kathmandu Metropolitan City, Lalitpur, Bhaktapur) enforce local dry days on major festival evenings such as Holi and Gai Jatra.

Drunk Driving (DUI) under the Motor Vehicles Act

Section 94 of the Motor Vehicles and Transport Management Act, 2049 prohibits driving any vehicle under the influence of alcohol or narcotic drugs. Traffic Police operate nightly breathalyser checkpoints in Kathmandu, Pokhara, Biratnagar, Birgunj and every zonal headquarters under the MaPaSe ("Madhya Pan Garera Sawari Nachalaun" / "do not drive after drinking") campaign launched in 2011 and ongoing.

Drivers who refuse a breathalyser test are deemed to have failed it and receive the same penalty. Under the Traffic Police's 2019 enforcement directive, the offender must also undergo a 30-minute traffic education session at the District Traffic Police Office before licence restoration.

Enforcement Architecture

Narcotic Drugs Control Law Enforcement Unit (NDCLEU)

The NDCLEU (established 1992) is the specialised unit of Nepal Police tasked with narcotics investigation. It operates under the Central Investigation Bureau at Maharajgunj and has district-level cells across all 77 districts. NDCLEU files cases in the District Court under Section 17 of the Narcotic Drugs (Control) Act.

Department of Drug Administration (DDA)

The DDA, under the Ministry of Health and Population, administers the Drugs Act, 2035 — the law governing pharmaceuticals (different from narcotics). It regulates drug manufacture, import, distribution, pharmacies, and licensing of drug retailers, and maintains the official list of controlled medicines (morphine, pethidine, methadone, codeine formulations) that are narcotic drugs for medical use.

Traffic Police (DUI Enforcement)

The Traffic Police, under the Nepal Police, conducts nightly breathalyser operations and publishes monthly statistics of drivers booked under §94. Kathmandu Valley alone books 3,000–5,000 drivers per month during peak festival seasons.

Customs and Armed Police Force

Cross-border drug trafficking is jointly handled by Nepal Customs, the Armed Police Force (Border Outposts), and NDCLEU. Nepal's porous 1,880 km border with India is the principal trafficking vector for heroin, cannabis and precursors.

Muluki Criminal Code 2074 — Intoxication and Public Order

The Muluki Criminal Code complements the special statutes with general offences that often apply in practice:

• §117–118 — creating public nuisance while intoxicated, disturbing public peace: up to 1 month jail + NPR 1,000 fine.

• §122 — selling adulterated or contaminated food or drink causing injury or death: up to 10 years jail.

• §188 — negligent homicide (applied in fatal DUI accidents): 2–5 years jail + compensation.

• §45 (intoxication as defence) — voluntary intoxication is not a defence to a criminal offence; involuntary intoxication may be raised only if the accused was unable to understand the nature of the act.

Recent Developments (2024–2026)

• Cannabis legalization bill — repeatedly tabled, not passed. MoHA has signalled it will consider a restricted medical/industrial hemp regime, but recreational legalisation is not on the active parliamentary calendar for FY 2082/83.

• Methamphetamine / yaba seizures — NDCLEU reports a sharp increase in amphetamine-type stimulant seizures on the southern border since 2023. Penalties for ATS now track the heroin schedule under Section 14.

• E-commerce alcohol sales — Supreme Court directive (2022) and subsequent MoHA notifications prohibit online sale and home delivery of alcohol; only physical licensed outlets may sell.

• Excise Act amendments FY 2081/82 and 2082/83 — annual Finance Act updates excise rates on domestic spirits, beer and imported liquor; 2025/26 (2082/83) rates are published on ird.gov.np.

How to Apply for a Liquor Licence in Nepal

1. Obtain a PAN / VAT registration (VAT mandatory — liquor is a forced-registration sector regardless of turnover).

2. Apply at the local municipality/rural municipality (retail) or the Department of Industry (manufacture).

3. Submit: company/firm registration, premises proof, ward recommendation, no-objection certificate from the local ward, and the prescribed fee (retail licence fee ranges from NPR 10,000 to NPR 60,000 depending on local classification).

4. Police clearance and site inspection.

5. Licence issued — valid for one fiscal year, renewable annually.

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Disclaimer

This article is a legal-information guide and does not constitute legal advice. For a specific case — a pending investigation, a licence dispute, a criminal charge or a DUI booking — consult an advocate registered with the Nepal Bar Council.