14th Jan, 2016
1950 India-Nepal Treaty of Peace and Friendship
Official name "Treaty of Peace and Friendship Between The Government of India and The Government of Nepal".
The treaty was signed at Kathmandu on 31 July 1950 by the last Rana Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and Indian ambassador to Nepal, Chadreshwar Narayan Singh and came into force the same day as per Article 9 of the Treaty.
It has ten articles in it. The treaty allows free movement of people and goods between the two nations and a close relationship and collaboration on matters of defense and foreign policy.
As per Articles 6 and 7, the two governments agree to grant, on a reciprocal basis, to the nationals of one country in the territories of the other, the same privileges in the matter of residence, ownership of property, participation in trade and commerce, movement and other privileges of a similar nature.
This enables the Nepali and Indian citizens to move freely across the border without passport or visa, live and work in either country and own property or do trade or business in either country.
Background
Established after an abortive attempt in 1952 of the Communist Party of Nepal to seize power with Chinese backing the country, India and Nepal stepped up military and intelligence cooperation under treaty provisions, and India sent a military mission to Nepal.
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