Biratnagar, June 27: The Morang District Administration Office has launched a targeted initiative to address serious cases of usurious lending (loan sharking) following a rise in incidents where victims have been driven to suicide or lost their land due to exploitative lending practices.
To respond to the growing crisis, the administration has placed the 100 most critical complaints on a fast-track process for investigation and resolution. The initiative comes after increasing public protests and several tragic suicide cases linked to loan sharking.
According to Chief District Officer Yubaraj Kattel, priority is being given to victims who are at immediate risk of suicide or losing all their property and becoming landless.
One of the most tragic cases involved Shanti Devi Mahato, 55, of Biratnagar-14, who borrowed Rs. 150,000 to pay for her daughter’s medical treatment. Although she repaid approximately Rs. 450,000, more than three times the original loan, the lender refused to return the land pledged as collateral and instead threatened to evict her from her home. Unable to cope with the financial and emotional pressure, she died by suicide on June 21, 2026.
A similar incident occurred on July 23, 2023, when Binit Sonar, 32, of Katahari, also died by suicide after allegedly being harassed by a moneylender. Sonar had borrowed Rs. 700,000 and had already repaid Rs. 1.5 million, including both principal and interest. Despite this, the lender reportedly demanded an additional Rs. 1.2 million. After seeking help from the District Administration Office without any immediate resolution, Sonar consumed poison shortly after leaving the office.
Following these tragic incidents, the administration has begun categorising complaints according to their severity in order to provide urgent support to the most vulnerable victims.
So far, the Morang District Administration Office has received 1,154 complaints related to loan sharking. Of the 224 complaints registered during the latest phase, 80 cases have been resolved through mutual agreement, while 144 cases remain under investigation. Through the administration’s intervention, victims have recovered Rs. 93.17 million in cash, along with 10 bighas, 19 katthas, and 9 dhurs of land.
However, Chief District Officer Kattel stated that legal challenges continue to hinder effective enforcement. He explained that while victims often know the facts of their cases, they frequently lack documentary evidence. In contrast, lenders usually possess formal legal documents and are often able to obtain court injunctions, making it difficult for the administration to proceed with legal action. According to Kattel, this gap between executive authority and judicial procedures remains a major obstacle in addressing loan sharking cases.
Morang Police Chief Superintendent of Police (SP) Kabit Katuwal stated that strict legal action will be taken against individuals involved in exploitative lending. He further noted that if investigations establish that a victim died by suicide due to harassment by a moneylender, police will pursue charges of abetment of suicide against those responsible.
Sunil Kumar Bhagat, a long-time campaigner for the rights of loan sharking victims, argued that many perpetrators exploit legal procedures by using the courts as a shield, allowing them to continue exploiting poor and vulnerable people while delaying justice. #nepal
