Scrap Collectors Profit from Demolished Squatter Settlements in Kathmandu

Kathmandu. Not only the roar of bulldozers and the cries of the displaced are heard in the squatter settlements along the Bagmati and other rivers in Kathmandu, but another scene is also visible in parallel—the hustle of scrap collectors searching for iron and zinc sheets within the ruins. As the state intensifies its campaign to remove unauthorized structures, these demolished settlements have become a goldmine for scrap dealers. From the theft of 'tree guards' planted on Kathmandu's sidewalks to the iron bars from houses demolished in squatter settlements, scrap collectors are now playing a role. Recently, an incident occurred near Mahankal Park in Ward No. 6 of Kathmandu Metropolitan City. The iron tree guards placed to protect the greenery along the road disappeared. When the municipal police investigated, they were found in a scrap collection center near the public property. According to Deputy Superintendent of Municipal Police Manoj Prasad Lamichhane, those involved have been sent to the Boudha police station for action after public property was found in a scrap warehouse. Municipal police officers say that the theft of iron-related materials in the metropolis has increased recently. 'The number of scrap collectors in the city has increased so much that dealers and collectors have started to forget the line between private and public property,' said a metropolitan official. When the bulldozer started demolishing a three-and-a-half-story house in the Shankhamul squatter settlement, the homeowner had tears in their eyes, while scrap dealer Rambihari Sah was busy calculating profits. Sah had taken a contract for the iron from the demolished structure for Rs 150,000. For Sah, who has been in the scrap business in Balkumari for 15 years, this was a big opportunity. Surat Sah, who has been working in scrap in Narephat for the past 20 years, has a similar story. After four houses in Shankhamul were demolished, he took a contract for the scrap for Rs 87,000. Hundreds of such dealers and workers are currently swarming these ruins of squatter settlements, working day and night in search of profit. Another sad aspect of this business is the plight of the displaced. After years of hard work, their houses and huts are reduced to rubble by bulldozers, and the squatters are in a dilemma of 'saving belongings or saving lives.' Bhim Subedi of Shankhamul shares a similar pain. 'After the house was demolished, he gave away not only scrap materials but also the bricks from the house for free. Where to take the belongings? There is no place to keep them, so they had to be handed over to scrap dealers for a pittance,' he told RatoPati a few days ago. What is the scrap cycle? Small collectors who roam from neighborhood to neighborhood buy iron from settlements at Rs 45 per kilo and sell it at Rs 50 to larger warehouses. According to Suresh Yadav from Sarlahi, one has to roam the streets of Kathmandu all day for a profit of Rs 5 per kilo. The goods collected by these small collectors reach various industries in Nepal through big dealers. According to dealers, this scrap is not exported abroad but is consumed as raw material in the country's own bar industries. Old iron bars are melted in furnaces and reappear in the market as new iron bars. Workers also have no ease Although it appears that scrap collectors have taken advantage of the demolition of squatter settlements, their work is very risky. Workers have to risk their lives while searching for iron in the ruins. Scrap collector Vijay Mishra said, 'My hands are full of injuries while extracting iron. Is it easy for laborers to work?' Entering the structures demolished by bulldozers, inhaling dust, and enduring injuries from sharp iron have become their daily routine. Metropolis's ruthless policy Kathmandu Metropolitan City has adopted a very strict stance towards the scrap business. Concluding that the scrap business is a major cause of increasing theft and ugliness in the city, the metropolis has become aggressive. For the past two years, the metropolis has completely stopped the registration and renewal of the scrap business. The metropolis plans to relocate scrap centers within the city to outside areas. Spokesperson Nabin Manandhar said that the metropolis has become stricter due to complaints that collectors take goods without local permission in some places, cause quarrels, and steal public property. According to a metropolitan official, most of the scrap collection is dominated by Indian citizens, which sometimes complicates the investigation of criminal activities. 'It is difficult for the police to gather evidence because stolen goods are easily sold in scrap centers and managed immediately from there. Therefore, the metropolis is increasing surveillance in coordination with the police and continuously pressuring dealers to leave the city,' said a ward chairman. According to that ward chairman, scrap dealers pay no taxes and are not part of any formal mechanism. He said, 'They are taking advantage of the plight of the residents of squatter settlements. Since some have paid money to the homeowners, it is difficult for us to take action. This has become a headache for us. We are seeking the help of the police.' We have started strict surveillance: Municipal Police Bishnu Joshi, Chief of the Municipal Police of Kathmandu Metropolitan City, said that strict surveillance has been initiated against the gang that steals public property from various parts of the city and sells it as scrap. He informed that after the tree guards along the roadside were found stolen and taken to scrap collection centers, the metropolis recovered the materials and sent a letter to the Boudha police for further investigation. 'The act of stealing the metropolis's property and selling it as scrap will not be tolerated under any circumstances. We have already requested the police to take strict action,' he said. He added that the metropolis has adopted a policy of relocating the scrap business outside the city, citing challenges to the city's beauty and security. 'We have not renewed the licenses of previously registered and tax-paying dealers, and we have asked them to move outside the metropolitan area,' he added. Joshi believes that the disorganized operation of the scrap business is the main reason for the theft of manhole covers, tree guards, and electric wires from the roads. He said that criminal activities have flourished under the guise of scrap collection, and scrap shops have become places for managing stolen goods. Joshi added, 'We find tree guards in some places and manhole covers in others. We are bringing the scrap shop operators who buy such materials under the legal framework.' Iron, zinc sheets, and other materials obtained from the demolition of squatter settlements or unauthorized structures are also purchased by scrap dealers at low prices and illegally transported. Joshi informed that while in some places the owners themselves sold them, organized gangs are active in the case of public property. He said, 'Most of the people involved in this business are foreign nationals. Since they buy and sell stolen goods, we have intensified monitoring keeping in mind the security sensitivity.' Joshi said that since the metropolis does not have the direct authority to file lawsuits, the process of taking action against those involved in theft and those who buy stolen goods for offenses against public property is being carried out through the police.