Mangaluru, July 29, 2015: It is reported that at a meting here July 28, DK District-in-Charge Minister Ramanath Rai has directed Superintendent of Police and City Police Commissioner to act against private money lenders who are engaged in collecting high interest rates from borrowers.
He directed DK DC Adoor B Ibrahim to verify whether the private financial institutions are giving loans and collecting interest on the loans as per the guidelines issued by the RBI. Officials should ensure that private money lenders do not harass farmers and general public.
Minister for Health and Family Welfare U T Khader said private financial institutions claim that they have been transacting as per RBI guideliness. There is need to verify interest collected for loan on pledging gold ornaments. In the name of auctioning of the gold ornaments, borrowers are harassed. If there was any violation by the financial institutions, action should be initiated strictly.
City Police Commissioner S Murugan said cases have been registered against 13 private money lenders who were engaged in violating guidelines while collecting interest. Pamphlets have been distributed among general public to create awareness on private money lenders and high interest collected by them. Superintendent of Police Sharanappa S D said that six cases have been registered against private money lenders who have been charging exorbitant interest in DK.