Nepal Government Reaches Agreement with Protesters Over Usury Issue

A nine-day protest against usury in Nepal has come to an end after the government reached a nine-point agreement with the protesters. The agreement was signed by Secretary Pushkar Sapkota from the government side and Avadhesh Kushwaha from the protesters’ side.

As per the agreement, the government will declare usury as an economic crime and announce its complete eradication in the upcoming cabinet meeting. This will automatically render all fake documents, blind agreements, and coercive checks invalid.

The Home Ministry will prepare a draft of a special bill within three months to create a law controlling usury. The law will ensure a separate tribunal to hear cases, return of property to the victims, and guarantee of compensation.

The agreement also states that the government will make it mandatory to verify the source of money and bank transactions while certifying transactions at the ward office. It will also take strict action against those who invest money earned through crime or corruption in usury.

The new law will consider activities such as creating fake documents, adding interest to the principal amount, not returning the principal amount, charging excessive interest, threatening or physically and mentally exploiting the debtor, and forcing them to sign blank checks or documents as crimes.

Investigations into usury cases will be conducted through forensic lab tests of documents, search for the source of property, and investigation under money laundering laws. The government will also expedite the hearing of cases pending in court to ensure justice for the victims.

A high-level coordination committee will be formed under the coordination of the Secretary of the Prime Minister’s Office to address the grievances of the victims. A separate desk will also be set up at the center.

At the district level, a facilitation committee will be formed under the coordination of the Assistant Chief District Officer, which will include three representatives of the victims. The committee will resolve all complaints within six months, and its implementation will be monitored by a committee led by the Chief District Officer.

The government has also agreed to provide economic assistance and relief packages in the annual budget to prevent the victims from falling into the usury trap again. With this agreement, the protesters have suspended all their protest programs.