Provision in law against moneylenders rarely enforced
K. C. Gopakumar
KOCHI: 19 MAY 2014 11:49 IST
UPDATED: 23 MAY 2016 18:52 IST
Even as the police action against usurious moneylenders continues and the government is contemplating new laws, an existing stringent law is yet to be properly enforced. The offences against the usurers are slapped often under the Money Lending Act for charging interest rate exceeding 2 per cent above the maximum rate of interest fixed by commercial banks on loans.
It is being pointed out that the Kerala Prohibition of Charging Exorbitant Interest Act, 2012, which contains stringent provisions against illegal moneylenders has not been fully implemented. The Act prescribes three-year imprisonment and fine of Rs.5,000 for charging exorbitant interests. That apart, it also stipulates that in the case a borrower commits suicide due to harassment by moneylenders; it would entail five-year imprisonment and fine of Rs. 50,000.
Answers & Comments
Answer:
NEWS STATES KERALA
KERALA
Provision in law against moneylenders rarely enforced
K. C. Gopakumar
KOCHI: 19 MAY 2014 11:49 IST
UPDATED: 23 MAY 2016 18:52 IST
Even as the police action against usurious moneylenders continues and the government is contemplating new laws, an existing stringent law is yet to be properly enforced. The offences against the usurers are slapped often under the Money Lending Act for charging interest rate exceeding 2 per cent above the maximum rate of interest fixed by commercial banks on loans.
It is being pointed out that the Kerala Prohibition of Charging Exorbitant Interest Act, 2012, which contains stringent provisions against illegal moneylenders has not been fully implemented. The Act prescribes three-year imprisonment and fine of Rs.5,000 for charging exorbitant interests. That apart, it also stipulates that in the case a borrower commits suicide due to harassment by moneylenders; it would entail five-year imprisonment and fine of Rs. 50,000.