Fleecing moneylenders : Govt gets cracking, registers 86 cases


Bengaluru, Jul 14 (DHNS): The State government has begun cracking the whip against moneylenders who are fleecing borrowers following spurt in cases of farmers suicides in the State.

As many as 86 cases have been booked against moneylenders in Mandya, Mysuru, Chamarajnagar and Hassan districts in the last one week under the Karnataka Moneylenders Act, 1961, and the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004. The cases are booked against unlicensed moneylenders and those forcing people, especially farmers, to repay loan, Chief Minister Siddaramaiah said on Monday.

Replying to a discussion on farmers suicides in the Legislative Assembly, he said that a district-level task force headed by the deputy commissioner has been set up to enforce these laws strictly. Licensed moneylenders can charge a maximum of 14 per cent for secured loans and 16 per cent interest for unsecured loans as per the Act. Raids are being conducted across the State against unlicensed moneylenders. Identity of those who give information about unlicensed moneylenders will be kept secret, he added.

Besides, the chief minister said his government had no objection to increasing compensation amount to the family members of farmers who committed suicide recently to Rs two lakh each from Rs one lakh. He, however, rejected the demanded by the BJP to increase it to Rs 10 lakh each, saying that such a decision will have adverse consequences.

As many as 68 farmers have committed suicide so far in the State since April this year. The cases have increased considerably in June and July. “The government is still clueless on the exact reason for farmers committing suicides. It is a mystery. Hence the government is planning to set up an expert committee at the State level to look into the suicide cases,” he stated.

Siddaramaiah said an all-party delegation will soon be taken to Prime Minister Narendra Modi, urging him to come to the rescue of the farmers. Agriculture Minister Krishna Byre Gowda said steps are being taken to provide counseling to the aggrieved farmers. The Health and Family Welfare Department will set up a counseling desk at taluk level for this purpose.
Opposition leader Jagadish Shettar, however, demanded that the government should completely waive off farm loans. He accused the government of not coming the rescue of the distressed farmers, leading to a heated exchange between Shettar and Siddaramaiah. The BJP then staged a walk out terming the government “anti-farmer.”

From the time House assembled, the BJP did not allow the business, demanding the government must come to the aid of farmers in distress. Dharnas, raising slogans, arguments and adjournments marked the day.

In the Legislative Council too the the farmers’ issue figured prominently. BJP leader K S Eshwarappa said that the chief minister visited the farmers’ house only after 61 farmers committed suicide. However, Minister S R Patil countered him saying already the government was giving interest-free loan up to Rs three lakh. “There is no need to learn from the party which made farmers to fall to the bullets of police,” he said referring to the Haveri incident.

 

  

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Comment on this article

  • Rita, Germany

    Wed, Jul 15 2015

    The misery of farmers starts from a different angle,I think.because many farmers were and are many a times illiterate and put their sign by thumb Impression.They dont know what is written exactly,believe what they say.and at the end,even when they pay back ,interest and loan and interest remain many a times unchanged.Pressure on them is intensified,with the Intention of swallow the land.Poor fellow has no Chance, is depressive,sometimes nature catastroph and Family tragody makes them to suecide.money lenders takeaway the land and sells.

    DisAgree Agree [2] Reply Report Abuse

  • Neville Fernandez, Mangalore/Antigua

    Tue, Jul 14 2015

    While the practice of moneylending was outlawed decades ago and the article talks of an Act in 2004, I feel that the practice of moneylending continues LEGALLY under different garbs - NBFCs, or as simply 'FINANCE' as it is known locally. When we have banks there is no need to have NBFCs or other 'finance' companies to disburse misleadingly 'easy' to acquire loans.

    DisAgree [1] Agree [7] Reply Report Abuse


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