Thimphu Thromde has been observing an increase in cases of encroachment on state land through illegal constructions and informal settlements. As per the Land Act of Bhutan 2007, Chapter 13, Article 299, encroachment on state-owned or private registered land is an offence of petty misdemeanour and the person shall be liable to be sentenced in accordance with the Bhutan Penal Code.

Therefore, to curb the increasing cases of encroachment on state land, the following decisions were made during the First Special Thromde Tshogde convened on 28 October 2021: