more-in Even as the police claim to be acting tough on money lenders charging high rates of interest, the worrying trend of victims taking the extreme step after being pushed to a tight corner continues in Tamil Nadu. The menace of usury hit the headlines in October this year when a labourer committed self-immolation after setting his wife and two children ablaze on the Collector’s office premises in Tirunelveli. The suicide of film producer Ashok Kumar here on Tuesday and the attempt of a Dalit family to end their lives, unable to bear the coercion of money lenders in Dindigul, are instances that not only reaffirm the torment of mental agony faced by victims of usury but also the desperation of people involved in certain professions, particularly the film industry, to seek loans at exorbitant rates of interest since banks or reputed financial institutions don’t lend them money owing to a variety of reasons. Many producers, realtors and others seem to have no other option but to approach loan sharks, who exploit the situation to the hilt. Usury has been prevalent since time immemorial, more so in the southern districts of Tamil Nadu with Madurai remaining a hotbed of the practice. Legal framework After the suicide of film producer G Venkateswaran, brother of director Mani Ratnam, in 2003 allegedly due to pressure from money lenders, the government introduced the Tamil Nadu Prohibition of Charging Exorbitant Interest Act which prohibited charging interest at a rate more than what is prescribed under the Tamil Nadu Money Lenders Act. According to Madurai Police Commissioner Mahesh Kumar Agarwal, the Tamil Nadu Government has fixed a maximum simple interest of 9% annually for secured loans and 12% for unsecured loans. Any money lender violating this norm or resorting to violence, intimidation or causing danger to person or property would be liable for prosecution. “We issued a press release asking people aggrieved by the unlawful actions of money lenders to lodge complaints directly with the Commissioner of Police on November 2/3. Of the 22 complaints received, 10 cases were registered resulting in searches, seizures and arrest of the accused money lenders. While nine petitions were disposed after both parties settled the matter amicably, three complaints did not merit action,” Mr Agarwal said. In Chennai, dedicated telephone numbers (23452231 and 9500099100) were earmarked by Police Commissioner A.K. Viswanathan for those affected by money lenders. Since May, 11 cases were registered and 8 money lenders arrested. Three money lenders were detained under the Goondas Act. V. Suresh, national general secretary, People’s Union for Civil Liberties, said kanthuvatti was peculiar to Tamil Nadu. Small traders and poor people fell in the trap of usury. “At least 85% of all commercial business transactions are in the informal sector where people do not have access to any finance or credit structure. While facilitating access to credit system, the authorities should go on a campaign mode to educate people on the dangers of usury,” he said. Dr. Suresh said the police could easily draw up a list of money lenders in all cities/districts. “But there is some reluctance since some police personnel are themselves involved in the business,” he added.

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