Demand of Kochi businessmen to make laws to regulate loan transactions

'The global economic recession is happening. In addition to that, existing lending transactions in the business sector are becoming challenging, said Rakesh Surana, President of Industry Organization Morang, 'The problem is becoming more serious due to the lack of laws to regulate lending transactions between businessmen and businessmen based on trust. has happened.'

It is a practice for financial institutions to keep mortgages while making loans to industrialists and if they do not pay the loans, they auction the same mortgages and recover them. Surana said, 'But the industry is forced to send its products to the market without collateral. Surana said that the debt recovery law is necessary because there is no option for the industry to recover the debt when the businessmen do not pay the loan.

In the industry market of Koshi province, more than 7 billion loans are yet to be recovered. Surana said, 'most of the industries have reached the point of closure due to non-recovery of that amount. For the management of credit transactions in India, the businessmen under the small and medium industries before selling the goods must pay the amount of the first party within 45 days if they have an agreement with the second party before selling the goods, and if not, within 15 days, and in case of non-payment, the remaining amount of the loan will be calculated from the buyer's income. There is a legal system to bring the lending business under the scope of regulation by collecting income tax. Surana said, 'If there is a similar provision in Nepal, it would have given relief to the industries that are in economic crisis.' Although there is still a large part of loan transactions in the

business, there is no clear law for its regulation and management, the state has not been able to absorb the business relationship between businesses, and because of this, the business world is becoming more problematic and distorted, so it is necessary to make a clear legal arrangement for its regulation. The industrialists of Koshi province have made a collective demand before the government.

According to Surana, there is a collective demand of the industrialists that a judicial body should be formed in relation to loan recovery, just like there is a system of bodies like the Revenue Tribunal to resolve disputes related to revenue, the Debt Recovery Tribunal to recover the debts of financial institutions.