Mumbai, June 29 (AHN) Co-operation Minister, Babasaheb Patil, said in the Legislative Assembly on Monday that the government has taken a serious note of the rising instances of illegal moneylending across Maharashtra over the past few years and has initiated preparations to amend the existing laws.

Since 2022, loans disbursed by moneylenders in the state have seen a surge of Rs 400 crore. The formal banking sector has made disbursement of Rs 12,415 crore during the same period.

The discussion was initiated by Sulabha Khodke during the Question Hour concerning moneylending loans in the Amravati district.

In his response, Minister Patil provided details on the state's moneylending data.

Several members including Congress Legislative Party Leader Vijay Wadettiwar, Nana Patole, Kailas Patil, Harish Pimple, and Hemant Ogale, participated in the debate.

Opposition members alleged that farmers are turning to moneylenders because they are failing to secure loans through the state's formal banking system.

Raising the issue of illegal moneylending, Member Harish Pimple pointed out that illegal loans are often disbursed on plain paper slips and demanded that a dedicated helpline be set up to register such complaints.

Member Nana Patole alleged that illegal moneylending has flourished because district grievance redressal committees have become inactive.

Replying to these concerns, Minister Patil stated, "The state has received 343 complaints regarding illegal moneylending so far. Fact-finding investigations revealed substance in 266 of these cases, and illegal moneylending was definitively found in 34 cases. First Information Reports (FIRs) have been registered in all 34 cases, and 48 accused have been booked."

He added that the government remains committed to providing credit to farmers who face difficulties securing loans and that necessary measures are underway.

“Since 2022, moneylending loans have increased by Rs 400 crore, whereas the banking system has distributed Rs 12,415 crore in loans. Therefore, it is incorrect to say that banks are refusing loans," Minister Patil said, while reassuring the House that stringent action will be taken if information arises about illegal moneylending operating outside the licenced system.

Vijay Wadettiwar raised serious questions about the government's failure in the Roshan Kule moneylending case. The Roshan Kule case is a high-profile, deeply tragic scandal from Chandrapur district, Maharashtra, that exposed a brutal nexus between illegal, high-interest moneylending (usury) and an international organ-trafficking racket.

Wadettiwar stated, "Moneylender Diwakar Nikure usurped farmers' lands and issued around 130 cheques, all of which bounced. Why has no action been taken against him, and why is he still at large despite defrauding people on such a massive scale?"

Responding to the query, Minister Patil assured the House that a thorough investigation would be conducted into the individual involved in the Roshan Kule case, and appropriate action would follow.

Further, Minister Patil told the Assembly that the state government will introduce more stringent provisions in the law to curb illegal moneylending across Maharashtra, providing for much harsher punishments than the existing legislation.

He emphasised that the state government has accorded topmost priority to safeguarding the interests of farmers by ensuring seamless credit supply, enforcing strict control over illegal moneylending, and taking effective action on grievances.

Assuring that no eligible farmer would be deprived of credit, Minister Patil stated that alternate arrangements have been made to provide crop loans through nationalised and other eligible commercial banks to farmers who are facing difficulties due to defaults with District Central Co-operative Banks (DCCBs).

The Minister further informed that out of 54 complaints filed under the Maharashtra Moneylending Regulation Act with the Office of the District Deputy Registrar (DDR) of Co-operative Societies in Amravati, 44 cases have already been resolved. He added that all necessary steps are being taken to provide immediate relief to the affected farmers.

To effectively restrict illegal usury and ensure strict punitive action against offenders, a three-member district-level administrative committee has been appointed. Furthermore, a District Coordination Committee, chaired by the respective District Collector, is actively monitoring the approval and distribution of crop loans. The Minister assured that these mechanisms are being reviewed periodically to keep a tight check on the situation.