Loan Sharks Continue to Exploit Victims Despite Legal Reforms

Kathmandu. Three commissions were formed to solve the problem of usury. After the commissions submitted their study reports, laws were also enacted. Commissions led by former judges Gauribahadur Karki, Tejbahadur Karki, and Baburam Regmi submitted separate reports.

The Act to Amend Some Nepal Laws related to the Civil Code, 2080 was passed by the House of Representatives. After that law was enacted, the police have been able to file cases against those who charge usury. However, victims of usury are still complaining of suffering. Avadhesh Kushwah, Chairman of the Farmers' Workers' Movement against Usury Nepal, claims that arrest warrants are still being issued against the victims. Talking to Ratopati, Kushwah said, 'Arrest warrants are being issued by the court and victims are being sought to be arrested in the Terai.'

Kushwah said that the moneylenders provide loans by making agreements for three times the amount, and when the borrowers cannot repay, cases are filed in court and their land is auctioned off. He said, 'The moneylenders themselves have filed cases and obtained arrest warrants, claiming that the money was not given.'

Due to such a situation, many victims are now going to India to live out of fear of being arrested, said Manoj Paswan, General Secretary of the Farmers' Workers' Movement against Usury. He said, 'Victims are still suffering, and no work has been done to find the source of the moneylenders' money.'

Paswan said that judgments are being made based on documents and the government has not paid attention to solving it. He said, 'In Dhanusha alone, arrest warrants have been issued by the court against about 800 victims.' Landowners have had their land auctioned.

About 31,000 complaints were filed against moneylenders at the commission led by former judge Gauribahadur Karki. That commission settled about 13,000 loan disputes. After that, another commission was formed on Chaitra 9, 2080, under the leadership of former High Court judge Tejbahadur Karki. A task force led by Joint Secretary Bhishma Kumar Bhusal also studied the matter. In 2082, another commission was formed under the leadership of Baburam Regmi with former AIG Bharat Bohara and Badriprasad Bhattarai as members.

Based on the complaints filed with the Commission for Investigation of Undue Transactions (Usury), it is estimated that there are currently about 65,000 victims.

After the issuance of the Act to Amend Some Nepal Laws related to the Civil Code, 2080, many complaints related to undue transactions were filed with the police. However, victims complain that effective investigation and prosecution have not taken place.

Former AIG Uttam Subedi, a member of the commission led by Gauribahadur Karki, said that the problem of usury has not yet been resolved in the Terai districts. He said, 'Even though laws have been made, the problems of usury victims have not been resolved.'

The issue of cases pending in court and those already decided has not yet been resolved. Former AIG Subedi said that the commission has suggested facilitating 'compromise' through discussion between both parties in cases pending in court.

The government has not made public the reports of all three commissions. Kushwah, Chairman of the Farmers' Workers' Movement against Usury, has demanded that the reports of all three commissions be made public. He said, 'The commission's reports should be made public.'