Maharashtra co-operative minister Chandrakant Patil on Thursday announced in the Legislative Council that a committee of legislators from all parties would review the Maharashtra Money-Lending (Regulation) Act, 2014. The minister made the announcement after several legislators alleged that illegal money lenders continue to operate in the state even after the law came into force. They claimed that the law in its existing form has not been effective in curbing the practices by illegal money lenders.
Replying to the calling attention motion moved by NCP legislator Vidya Chavan on the issue, Mr Patil admitted that till December 2015, 936 complaints about illegal money lenders were received throughout the state. The minister also said that the practice of illegal money lending is prevalent in Buldhana, Vashim, Akola, Yavatmal and Latur districts.
The minister also said that amendment would be brought in the Maharashtra Money-Lending (Regulation) Act also to provide relief to farmers who have taken loan from licenced money lenders. He said that the government had earmarked '170 crore for the scheme to waive the loans of those farmers who have taken loans from private money lenders. However, so far, only '50 crore was used.
“After the loan waiver scheme was announced, the government realised that even the licensed money lenders had given the loans outside their area of operation. As per law, money lenders are given licence for a particular area and cannot operate outside their designated area. Loans given outside their designated area become illegal as per the existing law and therefore the government cannot repay it. Which is why we will have to consider amending the law so that all farmers who have taken loan from private money lenders can be provided relief,” the minister said.
