The ruling TDP and main Opposition YSR Congress engaged in a heated war of words in the House with opposition leader Y S Jaganmohan Reddy hitting out at the ruling party over the alleged involvement of some TDP MLAs in the racket. His allegations were strongly denied by the ruling party.
More than 50 members of YSR Congress, including Jaganmohan Reddy, were suspended from Assembly in the morning after they staged a protest to press for a debate on 'call money racket', stalling proceedings in the House.
The debate on the issue of Constitution concluded in the afternoon.
'Call money' refers to a mode of private lending where loan is made available instantly at borrower's doorstep but at exorbitant rates of interest and the lender can demand repayment anytime over a call.
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As the House took up debate on the racket, Naidu made a statement on the issue.
Noting that the government took a serious note of the racket, he said police conducted raids on private money lenders across the state.
"So far 188 accused have been arrested which include the sympathisers of YSRCP (65), TDP (20), Congress (12), CPI (6), BJP (4), Lok Satta (2), CPM (1) and others 78," he said.
Observing that a judicial inquiry has already been ordered into the racket, he said no one will be spared.
The government would bring in a very stringent law soon
to regulate money lending business, Naidu said.
The suspension was announced by Speaker K Sivaprasad Rao after a motion to the effect was moved by Legislative Affairs Minister Y Ramakrishnudu.
TDP MLAs D Narendra and V Anita earlier referred to the remarks made by Roja and sought her suspension from the House.
The Speaker, who announced Roja's suspension for one year as per the decision of the House, stressed that the sanctity of the legislature and high standards should be maintained.
The Opposition leader later spoke on the 'call money racket'. Jaganmohan Reddy, who showed some photographs, referred to allegations that a TDP MLA went abroad with some of the accused in the racket.
Dismissing the allegations, TDP MLA Bode Prasad said some of the photos were "blurred" and that he favoured an inquiry into the issue. The legislator said he is ready to quit politics if the allegations are proved.
Labour Minister K Atchannaidu said photographs does not establish the guilt of an individual as many people take photos with prominent persons.
A war of words between Jaganmohan Reddy and some other TDP MLAs continued and Naidu reiterated that the government would take "demonstrative action".
The Speaker then adjourned the House for tomorrow.