Mumbai, July 7 (IANS). In a bid to protect vulnerable farmers and borrowers from exploitation, the Maharashtra government on Tuesday introduced a bill that aims to significantly increase the punishment for illegal money lending practices across the state.
This bill, presented in the Assembly by State Cooperative Minister Babasaheb Patil, proposes to further amend the existing Maharashtra Moneylenders (Regulation) Act, 2014.
The important amendments made in the Maharashtra Moneylenders (Regulation) Act, 2014 are aimed at cracking down on illegal moneylenders and providing relief to distressed borrowers.
The approved amendments significantly increase the legal strength of the existing Act, increasing both prison sentences and financial penalties.
The bill proposes to increase the punishment for illegal money lending in the state from the current five years to seven years’ imprisonment and increase the fine from Rs 50,000 to Rs 1,00,000.
Last week, in the Assembly, members of both the opposition and the ruling party strongly demanded strict action against unauthorized private money lending.
Many cases of illegal money lending are coming to light across Maharashtra.
The discussion in the Assembly revealed that exorbitant interest rates and constant harassment for payments are driving farmers to commit suicide in many places, and it is alleged that the absence of a legal check has led to an increase in such incidents.
As a result, the State Government decided to amend the existing Maharashtra Moneylenders (Regulation) Act, 2014.
Under three specific sections of this Act, there are provisions for imprisonment and fine to prohibit persons carrying on money lending business without a valid license, obtaining a license in a fake name or operating a business from an unauthorized location.
Additionally, harassing a debtor for debt recovery currently has a provision of imprisonment of up to five years and a fine of up to Rs 50,000.
However, due to some individuals and institutions indulging in illegal money lending – which proves that the existing law does not have enough strength – the state government is amending Section 39.
Under this section, the imprisonment period will be increased from five years to seven years and the fine will be increased from Rs 50,000 to Rs 1,00,000.
–IANS
ms/
