Nepal recently made a significant decision to include the disputed territories of Lipulekh, Limpiyadhura, and Kalapani on its new Rs 100 currency note, a move that has been met with contention from India. The decision was taken during a meeting chaired by Nepali Prime Minister Pushpakamal Dahal Prachanda, where the council of ministers approved the incorporation of these territories into the new map of Nepal. Rekha Sharma, the government spokesperson and minister for communication, information, & technology, announced this decision following a proposal from the Nepal Rastra Bank to update the map on the banknotes.
The inclusion of these controversial territories on the currency note has escalated tensions between New Delhi and Kathmandu. This move by Nepal comes after a series of events, including the issuing of a political map in May 2020 that included the same territories, leading to strained diplomatic relations with India. The disagreement over these territories was further exacerbated when Nepal objected to the inauguration of a road linking Kailash Mansarovar via Lipulekh on May 8, 2020, triggering responses from India's Ministry of External Affairs asserting that the road falls entirely within Indian territory.
Nepal's claim on these territories is rooted in the Sugauli Treaty of 1816, where it is stated that all territories east of the Kali (Mahakali) river, including Limpiyadhura, Kalapani, and Lipulekh, belong to Nepal. However, India has argued that the 1950 Treaty of Peace and Friendship between India and Nepal effectively annulled the Sugauli Treaty, thereby challenging Nepal's claims. Nepal has also referenced treaties such as the 1923 Nepal–Britain Treaty of Friendship to reaffirm its sovereignty over these areas during British rule.