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HC asks govt to take strict action against money lenders

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Press Trust of India Madurai
Last Updated : Sep 08 2014 | 10:20 PM IST
The Madras High Court today directed the Tamil Nadu Home Secretary and DGP to file a report on the cases filed against usurers since 2003 when a prohibition act in this regard was enacted.
Justice N Kirubakaran of the bench here said like the Kerala government which cracked down on usurers through its "Operation Kubera", Tamil Nadu should abolish usury and take strict action against money lenders who charge exorbitant rate of interest.
The Tamil Nadu Prohibition of Charging Exorbitant Interest Rate Act was enacted in 2003.
The judge, who was passing order on a petition seeking to transfer the investigation in a usury case from Kariappati Police in Virudhunagar to some other investigating agency, suo motu included the home secretary as a party to the case and suggested establishment of a special cell to probe the complaints against the usurers.
He directed the DGP to submit before the court district wise details of the number of cases registered across the state under the act and the current status of the cases.
The petitioner submitted that the accused was a powerful man and he was charging exorbitant interest and he owned 600 to 700 acres of land directly and through benami transactions.

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Noting that the court was not interested in knowing whether the allegations were true or not, the judge said it was surprising to note that based on the complaint given by the petitioner, appropriate action had not been taken by police even after the court asked a DSP to probe the complaint.
The judge said the Home Secretary and the DGP should file status report regarding number of cases filed under the provision of the special act.
The judge felt things had not changed after the enactment of the act to help poor borrowers.
In an open indictment, the judge said the number of cases coming before this court would reveal that some of the police officials, in spite of assisting the borrowers, were hand in glove with the persons charging exorbitant interest and frustrate the purpose of the act. Many families had committed suicide and it had been reported also.

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First Published: Sep 08 2014 | 10:20 PM IST

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