Mumbai, March 4 Maharashtra Chief Minister Devendra Fadnavis said on Wednesday that strict action would be taken against licensed money lenders who charge interest rates higher than the prescribed norms, and their licenses would also be revoked.
Responding to a question in the legislative council regarding harassment of farmers by private money lenders, Fadnavis said that penal action would be initiated against both licensed and illegal lenders found violating the law.
The discussion cited a shocking case from the Chandrapur district, where a farmer allegedly sold his kidney to repay a loan taken from a private money lender.
"There are both illegal and licensed money lenders. Loans given by unauthorized lenders are illegal. If a licensed money lender charges interest higher than the prescribed rate, we will take action and revoke the license," Fadnavis said.
He urged aggrieved individuals to approach the police and file complaints against errant lenders.
Minister of State for Home (Rural), Pankaj Bhoyar, said that micro-financing activities fall under the jurisdiction of the Reserve Bank of India (RBI).
He said that laws clearly prohibit money lenders from charging interest rates beyond the prescribed limits.
Bhoyar added that the chief minister has ordered action against those money lenders charging interest rates of more than 9, 12, 15, and 18 per cent.
He said that directions have also been given to attach their assets.
Regarding the allegation of kidney trade, Bhoyar informed the House that a Special Investigation Team (SIT) has been constituted to probe such cases.
Responding to a question whether the stringent Maharashtra Control of Organised Crime Act (MCOCA) would be invoked in such matters, Bhoyar said that the decision would be taken after the SIT completes its investigation.
