Submit your Article

President Ram Chandra Paudel on Friday authenticated the bill aimed at taking action against loan sharks.

The President’s Office said that President Paudel certified the bill ‘to amend some other Nepal Acts including Civil Code 2080.

President Paudel authenticated the bill endorsed by both the Houses as per Article 113 (2) of the Constitution.

It will get the legal status after it is published in the Nepal gazette.

The Upper House on Thursday unanimously endorsed the bill aimed at taking action against loan sharks. With the National Assembly endorsing a bill ‘to amend some other Nepal Acts including Civil Code 2080’, the passage has been cleared for its authentication from the President.

Tabling the bill, Minister for Law, Justice and Parliamentary Affairs, Dhanraj Gurung said that since the period of the ordinance related to usurious lending has expired, the bill had to be brought as an amendment to some other Nepal Acts to provide the justice of the loan shark victims. 

Following a series of protests from the loan shark victims, the government on May 3 had issued an ordinance to criminalize usurious lending and provide justice to the victimized borrowers. The government also formed an inquiry commission led by Gauri Bahadur Karki to collect complaints from the victims and study them based on the ordinance. The government and the victims on April 1, had reached an agreement to expedite the process to amend the laws to criminalize unscrupulous lending.

Since the ordinance has to be endorsed by the parliament within 60 days, the government tabled the replacement bill at the National Assembly on June 20 and the national assembly passed the bill on June 30.  The replacement bill to the ordinance was supposed to be endorsed from the House of Representatives on July 5. However, as the opposition parties including main opposition CPN(UML) obstructed the parliament against a controversial statement made by Prime Minister Pushpa Kamal Dahal, the bill couldn’t be endorsed.

With the expiry of the ordinance and failure to endorse from the parliament created a legal vacuum in the investigations, the government again tabled the bill at the House of Representatives which endorsed it on July 17. However, National Assembly Chairman Ganesh Prasad Timilsina initially refused to include the bill in the proceedings of the upper house and sought opinion from the Attorney General’s Office.

The bill has taken a significant step by criminalizing the practice of lending money at exorbitant interest rates through unfair transactions. It establishes provisions for imprisonment of up to seven years and imposes fines of up to Rs 70,000 on individuals engaged in such predatory lending practices. This move aims to protect vulnerable borrowers from falling into debt traps and to deter loan sharks from exploiting people in dire financial situations.

In addition to criminalizing predatory lending practices, the bill has defined the forcible transfer of a debtor’s immovable property through threats, violence, or exploitation for debt recovery as an unfair transaction. Furthermore, the bill addresses the issue of exorbitant interest rates by stating that charging interest to the extent that it exceeds the principal amount is punishable. 

The commission has opened its office in Janakpur, the capital of Madhes Province, as it will be easier for the victims to share their problems. Most of the loan shark victims are from districts of the Terai region.  Of the 24,000 complaints received by the Karki commission, majority are from eight districts of Madhesh and Nawalparasi (Susta West). The commission has settled around 1,800 complaints so far and returned 8 bigha of land to victims from lenders.

Koshi Province Acting Chief Minister Hikmat Karki said that the CPN-UML is ready to form a new government together with the Nepali Congress.

Karki, who was reinstated after the Supreme Court removed Congress province Parliamentary Party leader Uddhav Thapa from the post of chief minister, took charge as the acting chief minister today.

Speaking to journalists at the Biratnagar Airport this afternoon, he said that the UML will not be the stumbling block for the prosperity of the province.

Karki said that the country’s largest parties—Nepali Congress and CPN-UML—could go together.

“We can go ahead by forming a new government if the Nepali Congress is ready to work with the UML for democracy and good governance. We are open,” he said.

Karki said that discussions are going on for the same.

“We are ready to give the post of chief minister. The party should be ready to give the post of chief minister if it has no majority. But I do not agree with the proposal to change the leadership on the rotation basis,” he said.

Karki said that the UML could also go to the office of the province chief for the formation of a new government by garnering a majority.

The ruling Nepali Congress has decided to hold its Mahasamiti meeting in November to undertake responsibilities assigned to it by the party’s policy convention as decided in the 14th general convention.

The Mahasamiti is the party’s apex body, which dwells on contemporary political issues. The party has also decided to hold a nationwide campaign between Aug 5 and Aug 14 and in the community from Aug 27 to Sept 10 for strengthening the party’s organizational base.

The week-long meeting of the Central Working Committee (CWC), which took place after a gap of one year, also made its position on a host of national agendas, but failed to address key intra-party issues such as holding a policy convention, forming the party’s department and addressing concerns related to the party’s sister organizations.  Regarding the current corruption scandals, the party has said that good governance is its top priority.

“The Nepali Congress has and will always be committed to making the country free from corruption by punishing anyone who commits corruption according to the law,” the party has said.

The party has also commended the government for the steps taken to investigate and prosecute fake Bhutanese refugee scam and Lalita Niwas land grab case. Several high level politicians, including senior NC leader Bal Krishna Khand, and business persons have been implicated in both scandals. 

The NC has said that its policy on corruption is that no innocent should be punished or guilty be spared. During the CWC meeting, however, many CWC members of the party had defended Khand and protested the call raised by the general secretary duo, Gagan Kumar Thapa and Bishwa Prakash Sharma, to suspend him. 

Through its CWC meeting, the Congress party has also recommended that the government ensure good governance, control corruption and uphold transparency and accountability, as desired by the people. The party has also called on the government to improve services provided through government offices.  Although there have been some improvements in the procedures for obtaining essential documents such as passports, national identity cards, driver’s licenses, etc., the NC has demanded “immediate and meaningful” improvements from the government to create a situation that can be felt by the consumers.

The Covid-19 pandemic and the Ukraine-Russia war made negative impacts on the production and distribution systems worldwide, affecting our society as well, according to NC, consequently, industrialists, traders, businessmen, farmers, and laborers are worried about running their businesses and maintaining their daily lives.
The coalition government formed in this situation is working to address these problems, and there have been some signs of improvement in the economy recently, the NC has said.

“To make these reforms comprehensive and sustainable, to strengthen the economy, and to make the banking system accessible to the general public, the Nepali Congress draws the government's attention to make important decisions on this sensitive issue,” the party stated.

While the government is taking meaningful initiatives to control price increases and shortages, it is the state’s duty to ensure smooth supplies of essential commodities to the people and provide relief to the people. So, the Congress has requested the government to conduct a proper study of low-income families, daily wage earners, street vendors who have been displaced and are currently employed, and make necessary decisions for their livelihood.

The CWC meeting also requested the government to conduct a serious and in-depth investigation into the smuggling of 100 kg gold through the Tribhuvan International Airport Customs Office and bring the culprits to book.

The party has also drawn the government’s attention toward shortage of fertilizers and seeds that farmers have been facing during the cultivation season. Due to low rainfall, paddy transplantation has not taken place on one-thirds of the land, which has had a negative impact not only on the daily life and annual income of farmers but also on the national domestic product, the party has said, calling on the government to provide fertilizer and seeds to the affected farmers at concessional prices.

The NC has also raised the issue of lumpy skin disease, which has killed and affected thousands of cattle across the country. The infection has become particularly hard on cattle farmers due to the ongoing economic recession, the party has said, urging the government to provide compensation to the affected farmers and distribute vaccines at the earliest.

The Congress party has also expressed concern that the paddy output could drop this year due to low rainfall. This could have a negative impact on the daily life and annual income of farmers, as well as the overall GDP of the country, the party has said. The NC has asked the government to take proper strategic precautions and manage possible food shortage.

The party has urged the government to declare areas where paddy transplantation is not possible due to delayed or insufficient rains as 'dry areas' and provide necessary relief and compensation to the farmers. Additionally, the NC has also called on the government to provide compensation to victims of floods, landslides, and other catastrophes in different parts of the country.

Similarly, the NC has urged the government to support the people who have been affected due to the wrong intentions of some microfinance banks and cooperatives. The party has asked the government to deliver justice to the depositors and take necessary decisions to support borrowers who have not been able to repay their loans taken on group guarantees.

The NC has also concluded that the enactment of the Citizenship Act, initiated by the party, has brought smiles to the faces of people. The party has requested the government to prepare Citizenship Regulations at the earliest and facilitate the process of citizenship distribution.

Stating that transitional justice laws are crucial to bringing lasting peace in the country, the NC has asked the government to pass transitional justice bills from both Houses of parliament by forging consensus among all parties.

The NC has also drawn the attention of the government to the need to bring crucial laws like the Federal Civil Service Act, Federal Police Act, Federal Education Act, among others, which are crucial for the smooth implementation of federalism.

Stating that groundwater levels in the Tarai Madhes region are depleting due to the impacts of climate change and environmental impacts on the Chure region, the NC has asked the government to find out the reasons behind this and provide a solution to the problem.