The police should not only book cases against moneylenders charging exorbitant interest but also look at non-banking financial companies (NBFC) that are lending money against jewellery. In a meeting chaired by district in-charge Minister B. Ramanath Rai on Tuesday, Health and Family Welfare Minister U.T. Khader expressed concern over some NBFCs that were lending money against gold. “There will be stipulations by the Reserve Bank of India over the interest they can charge. Look into it and prosecute, if they are violating it,” he told Commissioner of Police S. Murugan and Superintendent of Police Sharanappa S.D.
Mr. Khader said there are many in the city and rural areas who have pledged their gold jewellery for money. These firms should not be allowed to charge exorbitant interest and auction the gold that has been pledged.
Earlier, Mr. Murugan gave details of 13 cases registered by the Mangaluru City police against money lenders for alleged illegal lending of money and harassing creditors. “We are registering all complaints and looking at whether the process adopted is legal or illegal. If there is any violation we are arresting the moneylender,” Mr. Murugan said.
Mr. Sharanappa said so far that there have been six cases of alleged charging of excessive interest.
Mr. Rai asked the police to be firm in their action against moneylenders harassing people. “They should get the fear of law. Working of these moneylenders should be tightened,” Mr. Rai said.
