Joint commissioner of police (crime) Alok Kumar said more than 60 cases have been registered against illegal financiers. They reportedly recognised interest ranging between 10% and 15% a month.
The fraud and misappropriation squad of the central crime branch (CCB) has been instructed to crack down on city’s illegal moneylenders, charging exorbitant interest rates.
The city police commissioner, Shankar M Bidari, and joint commissioner of police (crime) Alok Kumar gave the passed the oral instruction, after several people had fallen prey to the debt trap.
Kumar said more than 60 cases have been registered against illegal financiers. They reportedly recognised interest ranging between 10% and 15% a month.
The Karnataka Money Lenders Act, 1961, allowed financiers to charge an annual interest of 15% on secured loans, and 18% on unsecured loans. They were also mandated to obtain the permission of the authority concerned to their business.
Police said financiers violated the law and collected exorbitant interest from debtors. Anti-social elements, especially budding rowdies, have been employed as collection agents.
Several debtors committed suicide, or attempted to end lives, after falling prey to latter-day Shylocks. However, only a few approached the police with complaints against financiers and their collection agents.
In was in this backdrop that the top cops asked the CCB to crack the whip on illegal financiers. Those found violating the law could be booked under the provisions of the Karnataka Prohibition of Charging of Exorbitant Interest Act, 2004, an offence punishable with imprisonment up to three years.
Meanwhile, the fraud and misappropriation squad arrested nine alleged illegal financiers during the past six days. On Tuesday, three persons, including a woman, were arrested at Ramachandrapur near Jalahalli.
The accused persons were identified as R Padmavathi, 35, Krishnamurthy, 49, and R Krishna, 29, all residents of Ramachandrapur.
Several others were also involved in the illegal activity in Ramachandrapur, police said, adding that a hunt was under way for four more persons, Ramesh, Sagay Marry, Indra and Kousalya, who have been absconding.
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