Nepal plans to grab king's palaces, land

KATHMANDU, Feb 26 (Reuters) Nepal's multi-party government plans to seize the property held by unpopular King Gyanendra and set up a panel of ministers to collect details of assets held by him, a cabinet minister said today.

''We have appointed a three-member team to collect the details of property earned by King Gyanendra after he ascended the throne and recommend procedures to nationalise it,'' Dilendra Prasad Badu, junior information minister, told Reuters.

He said the 59-year-old king would be allowed to retain the property he owned before being crowned after the 2001 palace massacre in which his brother King Birendra, then Queen Aishwarya and eight other members of the royal family were killed.

''The property and assets held by King Birendra and Queen Aishwarya will also be nationalised,'' Badu said.

''We'll first collect the details of assets and property, nationalise them, then turn (them) into a charity trust.'' ''It is expected that there are huge amounts land and other assets,'' said Badu, also the cabinet spokesman.

Before 2001, Gyanendra was a hard-nosed businessman with interests ranging from tea and tobacco to casinos.

Badu said the panel was given one month to complete its work.

''Soon after that, the process of nationalising the royal property will begin.'' The monarchy's popularity has plummeted since 2005 when Gyanendra grabbed absolute power saying he was moving to crush an Maoist revolt in which more than 13,000 people were killed.

But he was forced to relinquish power last year following street protests launched by political parties and supported by the Maoists.

They have now signed a peace deal.

Nepalis are expected to elect in June an assembly to be tasked with drawing up a new constitution and deciding the future of the monarchy. The Maoists want Nepal to become a republic.

REUTERS SAM PM1930