Out of 26,000 complaints, only about 4,000 complaints were resolved

KATHMANDU, Sept 17: The three-member probe commission formed to address the problem of loan-sharking has filed a case related to unfair transactions against 55 loan sharks from seven districts of Terai. The commission was formed by the government in April to deal with the issue of unfair transactions, i.e. loan-sharking. On July 28, the Criminal Code was amended by declaring unfair transactions as a criminal offense.

Utilizing the said legal provision, the commission has filed a case against 55 loan sharks. Gauri Bahadur Karki, the chairman of the Commission, said that 55 people have been prosecuted against loan sharking, including 13 in Saptari, seven in Siraha, eight in Dhanusha, three in Sarlahi, nine in Bara, seven in Mahottari and eight in Rautahat. It is reported that seven moneylenders have been arrested in Madhesh Province for threatening violence or exploitation in debt recovery.

After a month-long protest by the victims, the government established the commission of inquiry with the introduction of the law on unfair transactions.

The commission received 26,000 complaints related to loan shark victims from 65 districts across the country. The commission said that the complaints of 32 districts have been dismissed. Out of the complaints received in the commission, a case was filed against loan sharking while processing 4,024 complaints. It is said that the court is going to conduct the trial of the debtors who have been prosecuted. 

According to the Commission, 294 complaints were filed in Koshi Province, 299 in Madhesh Province, 91 in Bagmati Province, 72 in Gandaki Province, 381 in Lumbini Province, 112 in Karnali Province and 90 in Sudurpaschim Province. So far, 3,782 complaints have been filed between the aggrieved debtor and the creditor.

Complaints that did not fall under the definition of unfair transactions, withdrawals of reconciliation applications by mutual consent, withdrawals by petitioners, no need for settlement agreements, cases pending in court, apparent transactions related to land purchase and sale, waivers by creditors etc were settled based on agreements, disputes, or other factors.

The amount of Rs 2.59 billion more demanded from the creditor other than the written transaction was settled for a total of Rs 1.32 billion.

A total of Rs 6.16 billion out of the Rs 7.47 billion claimed by creditors for recovery from debtors has been agreed to be reduced. The commission has approved a reduction of Rs 3.58 billion from the Rs 4.89 billion claimed by creditors.

According to the Commission, 163 Bigha four Kattha and four Dhur of land seized from the victims was also returned to the petitioners by the creditors. A committee consisting of assistant chief district officers, police officers and representatives of the district attorney’s office was formed in the respective districts to settle the petitions. The said committee used the necessary legal authority to facilitate settlements.

To address the demands of usury victims, the government formed a three-member probe commission under the chairmanship of the former chairman of the Special Court, Gauri Bahadur Karki, to investigate the unfair transactions related to loan-sharking. The government has extended the term of the commission for three months.

The commission has been tasked with investigating the creation of documents claiming to have received non-existent funds or amounts exceeding the actual ones, the preparation of documents reflecting interest amounts greater than the principal during transactions.

Likewise, the commission holds the authority to investigate issues such as creating new documents for interest, charging interest exceeding the limits prescribed by prevailing laws, using threats or violence for debt collection, transferring the debtor's immovable property rights based on unfair transactions, etc.

 
• probe_commission
 
• loan-sharks
 
• case_filed