Kathmandu. Twenty-six years ago, a cooperative called Sincere Saving and Credit Co-operative Limited was registered with the Department of Cooperatives. After that began a game of cheating borrowers and depositors, and turning them into squatters, all under a political cover. By taking collateral worth millions for loans worth only hundreds of thousands, Sincere has made many people homeless.

The registration date of Sincere, whose office is located in Putalisadak, near Singha Durbar, the country’s main administrative center, is December 14, 2000. Since its establishment, Sincere has continued its fraudulent activities while being protected under the shield of an old political party. However, it does not seem that the government led by Balendra Shah will take action against it either. Complaints against Sincere have been filed repeatedly, from the Commission for the Investigation of Abuse of Authority to the Department of Money Laundering Investigation. Yet why has no investigation been conducted into Sincere? This itself makes clear how far Sincere’s reach extends. Sincere uses various methods to deceive people.

It provides loans of Rs. 6 million by taking property worth tens of millions as collateral. Out of that, the key people at Sincere simply take Rs. 1 million as bribes. If a taxi worth Rs. 2.5 million is pledged as collateral, Sincere gives a loan of only Rs. 1.5 to 1.6 million, and takes Rs. 27,000 as a bribe. Sincere also earns commission from the insurance taken out on the collateral. At first, it says the loan is for eight to ten years, but then it forces annual renewal of the loan. Even when taking the loan, one has to pay a one percent service charge, and the same applies when repaying the loan. The renewal of the loan is charged separately again. Although the interest rate is said to be 14 to 16 percent, in practice it is 80 percent when the loan is taken.

The installments paid by the borrower are deposited into a savings account. At the time the loan is issued, the borrower is made to put a thumbprint and signature on blank Nepali paper and photocopied paper. As soon as three installments are missed, Sincere writes a consent letter on it and transfers the collateral into its own name. The borrower is not informed about this at all.

Many people were displaced because of Sincere. They lost collateral worth millions for just a fraction of its value. Sincere turned millionaires into street dwellers. Those who were displaced after their property was looted by Sincere are now nowhere to be found. Sitting behind the cover of a cooperative...

On one hand, Sincere is cheating the borrowers, and on the other, the state. Two sets of accounts are prepared for the general assembly. The real figures are hidden, and another set is shown. However, the state has not been able to take action so far. The reason is the depositors with high-level access. Prominent people have deposited money there. Political parties’ money is there as well. So who will take action? The officials of Sincere change parties whenever the government changes in the country. They join whichever party comes to power. This is how they have managed to survive.

Sincere never publishes notices of collateral auctions in national newspapers. The country’s law requires that, before auctioning collateral, a notice must be published in a national newspaper to inform the public. But Sincere disposes of assets without publishing any notice. The Balen government should take action against those who, by wearing the guise of a cooperative, have made thousands homeless and swallowed up assets.

Sincere is also accused of stealing money from depositors’ accounts, among other allegations. The government should investigate this as well. All of Sincere’s loan investments are in taxis, real estate, and shares. Although the law prohibits placing funds in luxury items, Sincere has