Fewer complaints due to powerful loan sharks: Victims

By Bom Lal Giri,Nawalpur, Aug. 30: From April 30, 2023, the government called the loan shark (metre byaaj) victims across the country to file complaints at the respective District Administration Offices (DAO) after a commission was formed to oversee loan shark incidents and an amendment to the prevailing penal code criminalised loan sharking.

In over a month, over 25,000 complaints in total were reported from 65 of 77 districts across the country. However, when compared to the complaints filed in each DAO, Nawalpur, also known as Nawalparasi East, had reported one of the fewest cases.

According to the Commission for the Investigation of Loan Sharking, only 21 complaints were filed in the Nawalpur DAO by July 15, 2023. 

The victims who reached the authorities and those investigating the loan shark complaints resonated, “There were far more victims in the district, but they did not lodge complaints.”

Talking to The Rising Nepal under a condition of anonymity as their lives could be threatened, the victims said that the loan sharks in the district had a powerful political background and high-level influence. “In the district, politicians, bankers and even media persons are loan sharks,” echoed the victims.

On October 3, 2021, an individual sought a loan of Rs. 1 million from Maya Bhandari, a resident of Kawasoti, Nawalpur. Bhandari is affiliated to the Rastriya Swatantra Party (RSP). She is a vice-chairperson of the Gandaki Province Committee and the vice president of the Nawalpur Constituency-1 Committee for the RSP.

As per the prevailing rule of loan sharking, Bhandari provided only Rs. 850,000 instead of Rs. 1 million by deducting Rs. 150,000 as interest for the next 15 days. Bhandari had reached an agreement for a personal loan of Rs. 3.6 million in the presence of a clerk at the Land Revenue Office.

The country’s law disallows personal loans at an interest rate of more than 10 per cent per annum. This is why loan sharks mention more than the actual loan amount in the agreement paper (tamasuk) only to impose high interest rates.

Until now, the borrower has already paid Rs. 1.5 million, including cash and gold jewellery, to Bhandari. However, the victim is being asked for more.

The victim was also apprehended by Bhandari in her own house recently. The victim had to provide Rs. 554,000 worth of gold chains and bracelets, which were brought from Binay Gold and Silver Jewellery Shop in Kawasoti, to Bhandari to be allowed to leave.

Moreover, the victim had signed a blank cheque for the account in Kamana Development Bank and provided it to Bhandari as guarantee. She also bounced the cheque by writing an amount of Rs. 1.3 million.

In another incident, Bhandari provided Rs. 400,000 in loan to an individual two years ago in two instalments. The interest rate was set at Rs. 1,000 for Rs. 100,000 daily and it amounted to Rs. 120,000 monthly. 

The borrower has already paid Rs. 2,880,000 in interest and handed over 18 tolas of gold jewellery to Bhandari. As she demanded more, the victim was forced to work in her home as a servant for one year after she forged an agreement of Rs. 1.6 million.

The victims who have filed complaints against Bhandari at the Nawalpur DAO informed that they were regularly threatened to withdraw the complaints.

Some victims informed that they were cheated by Parbati Acharya, a resident of Kawasoti. She is affiliated with the CPN (Maoist Centre), the ruling party, and is the chairperson of Nawalpur District Communist Women Association.

Two years ago, Acharya deducted Rs. 30,000 as a service charge and Rs. 105,000 in interest at a rate of Rs. 7 per day and provided a loan of Rs. 1.3 million to an individual. The borrower paid back Rs. 1.5 million in a month. However, 

Acharya forged another agreement of Rs. 1.5 million loans and is taking different steps to forcefully collect more money from the victim.

The victims informed that they had reached the party’s municipal committee and district committee and filed a complaint against Acharya but no steps were taken.

Bhandari and Acharya’s actions are only representative cases where politicians are abusing the poor in the district by means of loan sharking.

Other political leaders accused of loan sharking include CPN-UML’s Lila Thanet, who is also the wife of former UML leader Majhi Lal Thanet, Nepali Congress’s Bindu KC and Sita Kunwar, and CPN (Maoist Centre) provincial committee member Sarala Nepal.

Tulasi Khanal, a market representative of some media who prefers calling herself a journalist, has also been accused of exploiting the poor.

Talking to The Rising Nepal earlier, members of the Commission for Investigation of Loan Sharking informed that poor individuals were bound to seek loans from loan sharks as the banks deny providing them loans.

According to the loan shark victims of Nawalpur, bankers denied providing loans at a cheaper interest rate from the banks but coordinated with loan sharks to charge a higher interest rate.

The bankers accused of loan sharking by the victims are Dipak Gautam, branch head of NCC Bank, and Kumar Bastola, an employee at the branch of Siddhartha Bank.

Victims’ outcry

Nawalpur DAO has solved some cases and provided justice to the victims of loan sharking. The DAO has helped return 16 katthas and 15 dhurs of land confiscated by loan sharks and Rs. 26.4 million paid extra to the sharks by the victims in the district. 

Seeing people get justice, more victims are coming forward in the district. However, some victims argued that they might have made a mistake by filing the complaints at the DAO following the government’s request.

“The government is led by CPN (Maoist Centre). The same party took the initiative to provide justice to loan shark victims. However, members of the same party are exploiting us through loan sharking. No strict steps are taken against such leaders. They threaten us daily. Should we not have sought justice?” questioned a victim.

A couple of loan shark victims in the district have also attempted suicide due to continuous torture despite paying back the loan amount under the agreement already.

The victims informed that the ones who complained against individuals with good political influence were uncertain if they would ever get justice.

Meanwhile, DAO officials informed that the cases were difficult to solve as the accusers had stronger evidence.