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  India   All India  10 Aug 2019  Madhya Pradesh govt bans ‘sahukar’ system in tribal areas

Madhya Pradesh govt bans ‘sahukar’ system in tribal areas

Published : Aug 10, 2019, 3:34 am IST
Updated : Aug 10, 2019, 5:37 am IST

Nath announced the implementation of an alternative moneylending system for tribals.

A file photo of Madhya Pradesh Chief Minister Kamal Nath.
 A file photo of Madhya Pradesh Chief Minister Kamal Nath.

Bhopal: In a significant move, Madhya Pradesh chief minister Kamal Nath on Friday announced measures to dismantle the age-old ‘sahukar’ system (unlicensed money lending practice), which is prevalent in the tribal region of the state to free adivasis of their exploiters.

Accordingly, Mr Nath ordered the authorities concerned to restore both mobile and immobile assets of tribals mortgaged with their respective moneylenders by August 15.


“As many as 1.5 crore poor tribals of the state, the victims of the exploitative system, will be free from debts following the move,” Mr Nath declared while addressing a state-level function organised on the occasion of International Day of Indigenous Peoples at Chhindwara on Friday.

He said private moneylenders doing business in 89 scheduled areas of MP would be made to repay the loans they had lent to tribals if they were operating without obtaining a licence.

Mr Nath announced the implementation of an alternative system of moneylending for tribals in the 89 scheduled areas in the state, wherein debit cards and RuPay would be issued to each tribal in the areas, authorising them to withdraw up to `10,000 via ATM.


He also announced the conversion of all forest villages into revenue villages in the state to ensure that the local inhabitants enjoyed the various welfare measures launched by the government.

The move will also facilitate the transfer of ownership of land from the forest department to the rightful owner in these villages.

The chief minister also declared that each tribal family would be given 50 kg of rice or wheat on the birth of a child and a quintal of rice or wheat in the case of a death in the family, to ensure that they perform the rituals associated with these events without having to turn to moneylenders.

Tags: kamal nath, sahukar
Location: India, Madhya Pradesh, Bhopal