Licensed moneylenders will lose license if found charging exorbitant interest rates: Fadnavis

Mumbai, Mar 4 (PTI) Maharashtra Chief Minister Devendra Fadnavis on Wednesday said strict action will be taken against licensed money-lenders who charge interest rates higher than the prescribed norms, and their licences will also be revoked.

Replying to a question in the legislative council regarding harassment of farmers by private money lenders, Fadnavis said penal action would be initiated against both licensed and illegal lenders found violating the law.

The discussion cited a shocking case from Chandrapur district, where a farmer allegedly traded his kidney to repay a loan taken from a private money lender.

"There are illegal money lenders as well as licensed money lenders. Loans given by unauthorised lenders are illegal. If a licensed money lender levies interest higher than the prescribed rate, we will take action and revoke the licence,” Fadnavis said.

He urged aggrieved individuals to approach the police and lodge complaints against erring lenders.

Minister of State for Home (Rural), Pankaj Bhoyar, said micro-financing activities fall under the jurisdiction of the Reserve Bank of India (RBI).

He said laws clearly prohibit money lenders from charging interest rates beyond the prescribed limits.

Bhoyar added that the chief minister has ordered action against those moneylenders levying interest rates of more than 9, 12, 15 and 18 per cent.

He said directions have also been given to attach their assets.

Regarding the kidney trade allegation, Bhoyar informed the House that a Special Investigation Team (SIT) has been constituted to probe such cases.

Replying to a question whether the stringent Maharashtra Control of Organised Crime Act (MCOCA) would be invoked in such matters, Bhoyar said the decision would be taken after the SIT completes its investigation. PTI PR NSK