Mr. Hubbari: In a bid to curb the growing menace of illegal money lending in the twin cities, city police will keep tabs on miscreants involved in illegal loans by charging exorbitant interest rates, locally known as 'meter buddies'. We have started an initiative to do so. .
Many middle-class and poor people take hand loans, mainly from private moneylenders without valid licenses, to meet emergencies such as medical expenses, daughter's wedding, education expenses, and purchase of land. Use or borrow money.
Private money lenders are taking advantage of people, conducting illegal lending operations and harassing them into paying exorbitant interest rates of 10 to 30 percent, above the government-set rates. Powerless people take loans from them, agreeing to pay higher interest rates.
However, lenders charge exorbitant interest rates on an hourly, daily, weekly, and monthly basis. Many people in the illegal lending business have teams of thugs whose main job is to harass, assault, and threaten people if they fail to repay interest. Officials said police have stepped up action against illegal money lending after a boy was stabbed by another boy from the same school within the restricted area of Bendigheri police station recently.
With concerted efforts, the police succeeded in arresting 24 persons involved in the meter buddy business in the city.
Hubballi-Dharwad Police Commissioner N. Shashi Kumar said, “While interacting with people, we came across complaints of harassment by moneylenders over exorbitant interest rates and we intensified the investigation after the Vendigheri incident.” Based on the complaint filed at various police stations, 24 people, including two women, were arrested for being involved in the meter buddy business by threatening customers to pay high interest rates. ”
“Based on the complaint, we have arrested four people under the jurisdiction of Vidyagiri police station in Dharwad, four under the jurisdiction of Dharwad city police station, 12 under the jurisdiction of Bendigheri police station and five under the jurisdiction of Dharwad suburban police station. “We recovered bonds, blank checks, mobile phones, eight two-wheelers and two sharp weapons,” he said, adding that in some cases, lenders were using minors to collect loans and interest. Some lenders have a team of their goons who threaten borrowers if they default on payments.
Anyone who is being threatened with high interest rates by a money lender should go to the nearest police station and file a complaint. Additionally, we have instructed each police station to be extremely vigilant against loan shark businesses within their jurisdiction. That's just the beginning. He said the government will continue to crack down on people involved in illegal money lending.
