Check harassment by moneylenders: CM

Check harassment by moneylenders: CM

H D Kumaraswamy

Chief Minister H D Kumaraswamy on Thursday directed top police and district officers to take necessary steps to stop harassment of borrowers by moneylenders.

The State Cabinet last week decided to come out with “Karnataka Debt Relief Ordinance, 2018” to provide total relief from indebtedness to small farmers, landless agricultural labourers and those from the economically weaker section.

However, during the interim period till the ordinance is promulgated, debtors are facing risk as moneylenders and pawnbrokers have started harassing and intimidating them to recover loans.

Kumaraswamy on Thursday issued direction through Chief Secretary T M Vijay Bhaskar to all regional commissioners, Inspectors General of Police of all the ranges, deputy commissioners and superintendent of police of all districts to ensure that borrowers are not harassed by moneylenders.The circular issued by Vijay Bhaskar states that following the decision to come out with the debt relief ordinance, it has come to the notice of the government that moneylenders had started harassing and assaulting borrowers. “Hence it is hereby directed to take legal action against those who are harassing or assaulting borrowers.”

Speaking to DH, Kumaraswamy said the government will come out with a proposal to ensure that the poor get fresh loans in future. “It is obvious that once the debt relief legislation is in place, moneylenders will stop giving fresh loans. Where should one who needs a hand loan go? The government is aware of the problem and will come out with a solution soon.”

The borrowers are usually landless labourers, daily wagers, footpath vendors who have no dependable collateral to approach banks.