The government stepped back from its earlier decision to legalise the land transactions made by the parallel government run by Maoists during the conflict.

Prime Minister Baburam Bhattarai on Thursday told the parliament that the decision would not be implemented. “Considering the Supreme Court’s stay order and the protest from the opposition, the decision to legalise war time transactions has been taken back by the government,” he said.

NC and UML had been continuously stalling House proceedings after the Maoist-led government took the decision last month. Responding to a public interest petition filed by the Democratic Lawyers’ Association, the Supreme Court had issued stay order on the government decision to legalise sale, purchase and distribution of property by the People’s Council of the Maoist party during the insurgency.

The decision had stalled the peace process and statute drafting process. The opposition on Wednesday had agreed to sit for talks only after the PM Bhattarai’s commitment. He was forced to agree to resume the parliamentary proceedings.

The opposition welcomed the government move while it has raised hackles of the party’s faction of hardliners led by Vice Chairman Mohan Baidhya. The party’s Standing Committee meeting scheduled for today could not start after strong opposition from the hardliners. They have demanded resignation of Bhattarai. They asked the leadership call back party Bhattarai from the post of prime minister.

Even the coalition parties were against the government decision to legalise the war time land deals while the Baidhya faction had said that it was the only worthwhile decision taken by the Bhattarai-led government.