Bill For Harsher Punishment For Illegal Moneylenders Presented In Maharashtra Assembly
Officials said the amendments are aimed at curbing illegal money-lending and protecting farmers from harassment during debt recovery.
Mumbai: In a move aimed at curbing the harassment of farmers by illegal moneylenders, the Maharashtra government on Tuesday tabled a Bill to amend the Maharashtra Money-Lending (Regulation) Act, 2014, proposing stricter penalties for offences under the law.
The Bill proposes to increase the maximum punishment for operating a money-lending business without a valid licence from five years' imprisonment to seven years, while doubling the maximum fine from Rs 50,000 to Rs 1 lakh.
It also proposes to raise the maximum jail term from one year to three years for obtaining a licence under a fictitious name or carrying on money-lending at a place not specified in the licence. The maximum fine for these offences will increase from Rs 15,000 to Rs 50,000.
For molesting or abetting the molestation of a debtor during loan recovery, the Bill proposes to enhance the maximum punishment from two years to three years and increase the maximum fine from Rs 5,000 to Rs 1 lakh.
According to the Statement of Objects and Reasons, despite the existing penal provisions under the Act, illegal moneylenders continue to operate repeatedly, undermining the law and exploiting borrowers. The proposed amendments are intended to deter repeat offenders, strengthen enforcement and protect borrowers from exploitation.
Officials said the amendments are aimed at curbing illegal money-lending and protecting farmers from harassment during debt recovery. The government believes exploitative lending practices often trap farmers in a cycle of indebtedness, a factor widely linked to farmer suicides.
