The District Police Office, Parsa said that it has settled more than half of the complaints received so far related to unfair transactions, including loan sharking, through compromise.

Loan sharking, called ‘metre byaj’ colloquially, refers to the practice of lending money at exorbitant interest rates. In July last year, the Government of Nepal criminalised loan sharking by amending the National Criminal Procedure (Code) Act, 2017.

Madhes Province accounts for the highest number of loan sharking cases in the country.

“Of over 2,200 complaints received so far, nearly 1,200 have been settled,” said DSP Deepak Bharati, Information Officer at the Parsa District Police Office. “The office has received as many as 1,662 complaints from the District Administration Office, while 542 were directly registered by the locals until October 2.”

Bharati informed that the complaints were settled for Rs 209.3 million, against the claim of Rs. 341.1 million.

Data provided by the department which oversees complaints related to unfair transactions show that around 25 bighas (around 6 hectare) of land and properties built on it were returned to the people after the settlement.

The district Police has also taken 15 cases to the court, which could not be solved through an understanding. As many as 13 individuals have been arrested in those cases so far. 

Prior to the amendment of the National Criminal Procedure (Code) Act, 2017, the government had entrusted the local administration with the task of receiving complaints related to unfair transactions and settling them through a reconciliation.  According to the administration, it still receives such complaints. 

Some of the registered cases involve land translations dating back 15 to 20 years, Bharati added.