Issuing a stern warning against those indulging in usury in the district, the Superintendent of Police, Vijayendra Bidari, has asked victims of ‘kandhu vatti’ (exorbitant rate of interests) to lodge complaints with the District Police Office on all working days.
In a statement, the SP said that the rural district police had registered as many as 76 cases in 2014 under the provisions of Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003. So far, the police have registered 40 similar cases in 2015. The provisions would attract a jail term of a maximum of three years for offenders. Mr. Bidari warned the money-lenders to operate within the norms of Section 7 of Tamil Nadu Money Lenders Act, 1957.
He pointed out that people, who borrowed money for their family and business requirements, fell victim to various types of exorbitant interest rates like ‘kandhu vatti,’ meter interest, run interest and computer interest.
The SP advised the borrowers to desist from pledging gold ornaments and documents of their land or house to get loan on higher rate of interests. People should also avoid signing blank papers, documents, stamp papers while getting loans. They were also advised not to give power of attorney to the money lenders while taking loans.
He said people should try to avoid getting cheated by way of paying exorbitant rate of interest after repayment of loan to retrieve their pledged documents.
The SP said he was personally monitoring the special teams headed by the Additional Superintendent of Police at district level and in the police sub-divisions headed by the Deputy Superintendents of Police.
People can lodge their complaints on Mondays at the DPO between 10 a.m. and 1 p.m. on Mondays and between 12 noon and 1 p.m. on other working days.
