Govt to criminalise loan shark, victims withdraw agitation

Kathmandu / July 17: The government has reached agreement with the victims of loan shark.

As per the agreement, the government will criminalise loan sharking endorsing a proposal to this effect from the upcoming Cabinet meeting while the victims of the loan shark will call off their agitation effective from today.

The agreement is undersigned by Pushkar Sapkota, secretary of the Office of the Prime Minister and Council of Minister who was leading the government talks team, and Avadesh Kushvaha from the victim side.

The victims had started their agitation naming it ‘march on foot for justice’ on 9 July from Tritiyagachhi of Janakpuar and started the march toward Kathmandu. On 16 July, Home Minister Sudhan Gurung had held talks with the victims as they reached Nijgadh of Bara district and agreed to hold talks to solve the problem.

According to the agreement, the government will declare the end of loan sharking terming it a financial crime from the upcoming meeting of the Council of Ministers which will immediately terminate all forms of fake bonds of debt, mortgage deeds, forced transfer of property and obligatory/binding cheque labeling them illegal.

Similarly, the Home Ministry will formulate a special draft bill within three months to curb loan sharking, which will pave the way for forming a separate tribunal, return of the property of the victims and fair compensation to them. The new law will provision for bank transaction and legal source of amount while verifying transaction in a ward office.

The law will criminalise acts of merging interest into the principal amount and making new principal, making bond increasing the debt amount, taking excessive interest, issuing threat, exploiting physically or mentally, forced transfer of property. In case of pending case in court related to loan shark, provision will be introduced for untying legal difficulty and ensuring justice to victims.

All complaints related to loan shark will be resolved within six months, according to the pact.