State gets more teeth to curb moneylenders: Maharastra clears Maharastra Moneylenders (Rules) Act 2009

http://www.freepressjournal.in/FPJ/FPJ/2010/02/25/ArticleHtmls/25_02_2010_011_013.shtml?Mode=1

THE State Cabinet on Wednesday cleared the Maha- rashtra Moneylenders (Rules) Act, 2009 for implementation in the state. This new act will replace the Bombay Money- lenders Act, 1946 that was amended in 2006. Since the last three years, the law had been awaiting a formal nod from the Central Government. Though the Central nod was received last year, the implementation of this Act got further delayed due to the elections held then.
Subsequently, this Act was re- introduced in the cabinet on Wednesday and formally cleared. The provisions of this Act will be announced in the form of a government resolu- tion after the nitty-gritties are worked out.

This act is being implement- ed in a bid to provide protec- tion to poor farmers burdened by money lenders who lend at exorbitant interest rates and is meant to cap the problem of farmers committing suicides.

Though this is considered to be a landmark move, activisits say that it will not be of much help in reducing suicides by farmers. Kishore Tiwari, presi- dent of the Vidarbha Jan Andolan Samiti feels that this legislation is too little and too late. “The moneylenders have already donned different garbs to exploit farmers. Now, they have opened shops of pesti- cides, fertilisers and seeds and sell them on credit at huge lending rates. Once the farmer is unable to pay back, they officially file a recovery suit against them,” Tiwari told FPJ.
He explained that this legisla- tion would not have much impact because children of moneylenders are now lend- ing using this position in con- juction with multi-national firms and businessmen. This gives them official sanction to lend at exorbitant interest rates. They not just lend but also are traders for buying cot- ton and soyabean. This means that the farmer ends up com- pletely dependent on him, accuses Tiwari.

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