At least 226 people booked in 134 FIR against private money lenders in Gujarat

The crackdown against the lenders has been launched after a several instances of suicide by people after harassment from the lenders

Gujarat’s Minister of State for Home Harsh Sanghvi said that the police have been asked to curb the menace of money lending activities in their districts. | Photo Credit: Vijay Soneji

The Gujarat Police have launched a special drive against usurious and private money lenders who charge exorbitant interest rates from middle class and lower income families who borrow from them.

In the special drive, 134 FIRs have been lodged against 226 individuals involved in money lending at higher rates and then harassing the borrowers.

The drive will continue this month till July 31. The crackdown against the lenders has been launched after a several instances of suicide by people over harassment from the lenders.

“The State government has launched this special campaign against private money lenders under the Gujarat Money Lenders Act, 2011. In every district, the Police have been holding special camps to call citizens who are facing harassment from money lenders,” a statement from the State government said.

Gujarat’s Minister of State for Home Harsh Sanghvi said that the police have been asked to curb the menace of money lending activities in their districts.

“More than 32,000 citizens have participated in 568 public hearing camps across the State since June 21. The Police have lodged complaints against the loan sharks and have also resolved the complaints of the citizens,” the State government release added.

Last year also, the State government had launched a special campaign against the mushrooming lenders who lend money to poor people at exorbitant rates.

The State has witnessed instances of suicides, rapes, and violence, all because private moneylenders – some registered, some plying without licences – collect illegal sums of money after initially lending to the borrowers.

According to police officials, the amounts being charged by the lenders far exceed the State-mandated maximum interest rate of 12% per annum from a borrower who has provided security, and 15% per annum from those who don’t give a security. There are often huge penalties on late payment and daily interest that compounds.

Those who require assistance for overcoming suicidal thoughts may contact Sanjivini, Society for Mental Health suicide prevention helpline 011-4076 9002 (10 a.m. to 7.30 p.m., Monday-Saturday).