Government Reactivates District Committees to Handle Loan Sharking Complaints

After the expiry of the Baburam Regmi-led loan sharking commission, the government has instructed all 77 District Administration Offices (DAOs) to resume handling complaints through district-level mechanisms.

The Ministry of Home Affairs has directed each DAO to mobilize a three-member committee led by the Assistant Chief District Officer, with representatives from the District Police Office and the District Government Attorney’s Office. This move aims to ensure that victims of predatory lending can continue to seek justice even after the commission’s tenure ended.

According to the Regmi Commission’s final report, 41,409 complaints were filed from 43 districts, of which only 6,393 cases were resolved before the body’s dissolution. The remaining cases will now be processed at the district level.

Home Minister Om Prakash Aryal has urged local authorities to take prompt action on pending cases. Loan sharking was officially criminalized under Section 249(a) of the Criminal Code (Amendment) 2023, and the ministry has stressed that all district committees must operate actively and effectively to protect borrowers from exploitation.