Strong action needed against blade mafia

The state legislature had passed a law years ago banning money lending at high interest rates. Under Section 7(1) of the Kerala Money Lenders Act, strict punishments are in place for those who charge daily interest rates higher than what the Act allows. Police can register a non-bailable case against such illegal moneylenders. If a person who has borrowed money at high interest rates files a complaint, and if the lender has taken possession of any movable or immovable property as security for the loan or interest, the court can order that the property be returned to the borrower.

Even though such a strong law exists, illegal moneylenders who charge cruel interest rates continue to operate freely. Many people who borrow from them end up losing their property, falling into debt traps, and in some cases, entire families are driven to suicide due to threats from the lenders' goons. One main reason for this situation is that there is a large number of people who lend money without a license or record. Often these lenders are benamis of corrupt officials or local gangsters. They usually take property documents, vehicle papers, or house deeds before giving loans. Most people borrow money to build houses, educate children, conduct marriages, or pay for medical treatment.

Naturally, many borrowers fail to repay such high interest. When payments stop, the lenders add penalty interest, and the debt keeps increasing, making it impossible to clear. Finally, many people choose suicide as their only escape. The other day, a trader named Musthafa in Guruvayur committed suicide after falling into such a debt trap. He had borrowed Rs 6 lakh at a high interest rate. Within a year and a half, he repaid Rs 40 lakh by borrowing more from others, yet his debt was never cleared. When he missed one payment, the lender’s goons threatened to kill his family. They even forced him to sell his land worth Rs 20 lakh for just Rs 5 lakh. Despite approaching the police, nothing happened. With no way out, the 48-year-old ended his life.

Many such suicides in Kerala have the same story behind them- the torture and threats from illegal moneylenders. Although the Crime Branch has been assigned to act against them, no serious action has been taken. Even though raids are permitted, they rarely happen. Many moneylenders have strong political and bureaucratic backing. There have been many tragic incidents, like the farmer Velukkutty from Palakkad, who took a Rs 3 lakh loan for his daughter’s wedding. After paying Rs 10 lakh in interest, the lender demanded Rs 20 lakh more, forcing him to jump in front of a train. If the police act strictly under the existing law, this exploitation by illegal moneylenders can be controlled to a great extent. The Home Department must take urgent action without further delay.