KATHMANDU, July 17: The nine-day protest against loan sharking has been suspended after the government and representatives of loan-sharking victims reached a nine-point agreement on Friday.
The "Justice March" on foot, which began from Tritiyagachhi in Janakpur on July 9, had reached Nijgadh in Bara, where an initial understanding was reached with Home Minister Sudan Gurung on July 16 to form formal negotiating teams in Kathmandu.
Following that agreement, the victims' delegation traveled to Kathmandu, where intensive talks were held with a government team led by Pushkar Sapkota, secretary at the Office of the Prime Minister and Council of Ministers.
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 table a proposal at the Cabinet declaring loan sharking an economic crime and announcing its complete eradication. The proposal will seek to invalidate fraudulent debt documents, mortgage deeds, coercive property transfers and forced cheques.
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The Home Ministry has also committed to preparing a draft bill within three months to introduce a dedicated law against loan sharking. The proposed legislation will include provisions for a special tribunal, the return of victims' property and compensation.
The agreement further requires ward offices to verify the legal source of funds and bank transaction records before certifying private lending transactions. It also calls for strict action against those who invest proceeds of criminal activity or corruption in loan-sharking operations.
The proposed law will criminalize practices such as inflating loan documents, capitalizing interest into the principal amount, failing to issue receipts, charging excessive interest, intimidation, physical or mental abuse, forcing borrowers to sign blank cheques or documents, and illegally seizing property.
It also provides for forensic examination of disputed loan documents, investigation into the source of lenders' assets, and money laundering investigations where applicable. Legal hurdles affecting cases already under court consideration will also be addressed to ensure justice for victims.
A high-level coordination committee, led by the secretary at the Office of the Prime Minister and Council of Ministers, and a dedicated help desk will be established at the federal level. At the district level, facilitation committees led by assistant chief district officers and including three representatives of the victims will be formed to resolve all complaints within six months, under the supervision of chief district officers.
The agreement also commits the government to introducing financial assistance and relief packages through the annual budget to prevent victims from falling back into the cycle of loan sharking.
Following the agreement, the victims announced the suspension of all protest programs.
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