RAMANATHAPURAM
Superintendent of Police Omprakash Meena has warned financial institutions of severe action if they harass borrowers even after seizing their vehicles for outstanding dues.
Talking to reporters after addressing a special camp organised to receive petitions from the public regarding ‘kanduvatti’ (usury) here on Friday, the SP said he had received complaints of harassment and would initiate action as per law after detailed inquiries.
After launching district-wise awareness campaign on ‘kanduvatti’, Mr. Meena organised the special camp to help the victims of usury after four members of a family, including two children, ended their lives at Tirunelveli Collectorate allegedly due to usury.
The SP said there were complaints that private financial institutions, which lent loans for purchasing tractors, autorickshaws and two-wheelers, harassed the borrowers even after seizing the vehicles for the liability.
“We have received statements from one side and after hearing the other side, action would be taken as per law,” he said.
He said under Section 3 of the Usurious Loan (Tamil Nadu Amendment) Act, interest collected above 9% on secured loans and 12% on unsecured loans would be considered exorbitant and the police would take action against moneylenders who collected high interest rates.
The people who borrowed money from moneylenders did not have evidence of repayments made. They should document their loans and repayment of principal and interest in a promissory note, the SP said, adding the police could act only if there was evidence.
Asked about complaints of the police ‘siding’ with moneylenders and acting against borrowers, the SP said stern action would be taken against the police personnel if they were found guilty. Those who faced harassment due to usury could meet him with proper evidence anytime.
A woman who presented a petition to the SP during the camp complained that her husband went missing after a moneylender harassed him with the alleged support of the police, demanding interest for a loan of ₹1 lakh even after he repaid the loan.
Another woman complained that a moneylender harassed her, stating that her husband who died six months ago had borrowed ₹1.10 lakh and demanded that she repay the loan with interest.