Kathmandu, July 17: The protest against usurious lending, which had continued for the past nine days, has finally been suspended after the government and representatives of the victims reached a nine-point agreement today.
The “Justice March on Foot,” which began on Asar 25 (July 9) from Tritiyagachhi in Janakpur, reached Nijgadh in Bara on Asar 32 (July 16). Following this, Home Minister Sudhan Gurung and representatives of the victims agreed to form a negotiation committee in Kathmandu.
In accordance with that understanding, the victims’ negotiation team arrived in Kathmandu yesterday. Intensive talks between the victims’ team and the government delegation led by Pushkar Sapkota, Secretary at the Office of the Prime Minister and Council of Ministers, resulted in today’s agreement.
The agreement was signed by Secretary Sapkota on behalf of the government and Awadhesh Kushwaha on behalf of the victims.
Under the agreement, the government will submit a proposal to the next Cabinet meeting to officially classify meter-interest as an economic crime and declare the complete eradication of the exploitative practice. As a result, all fraudulent loan documents, mortgage deeds, property transfer documents obtained through coercion, and forced cheque agreements will automatically become invalid and void.
The Home Ministry will, within three months, prepare a draft of a special bill to enact a shark loan control act. The proposed law will establish a separate tribunal to hear meter-interest cases, guarantee the return of victims’ property, and ensure appropriate compensation.
The agreement also requires ward offices to verify the legal source of funds and proof of bank transactions before certifying loan transactions. It further provides for stringent action against individuals who invest proceeds of criminal activities or corruption in usurious lending.
The new law will criminalize practices such as preparing loan documents for amounts exceeding the actual loan, capitalizing interest into the principal, refusing to issue receipts to borrowers, charging excessive interest, intimidating borrowers, subjecting them to physical or psychological abuse, coercing them into signing blank cheques or documents, and unlawfully seizing their property.
Investigations into usurious lenders will include forensic examination of loan documents, verification of the source of their assets, and inquiries under anti-money laundering laws in accordance with criminal procedure. The agreement also commits to removing legal obstacles to ensure justice for victims in cases already pending before the courts.
To address victims’ grievances, a high-level coordination committee chaired by the Secretary of the Office of the Prime Minister and Council of Ministers will be established at the central level, along with a dedicated help desk.
At the district level, facilitation committees headed by the Assistant Chief District Officer and including three representatives of the victims will be formed. These committees will resolve all complaints within six months, while a committee led by the Chief District Officer will monitor their progress.
The agreement also provides for the inclusion of financial assistance and relief packages in the annual budget to prevent victims from falling back into the cycle of usurious lending. Following the signing of the agreement, the victims announced the suspension of all protest programmes.
People’s News Monitoring Service.
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