Need to borrow money? Check Money Lending License

People who approach money lenders in times of those certain specific emergencies must make it a point to check their Money Lending License first.

Advocate Kapil Shrimali says that any person who lends money without obtaining money lender license is actually committing a crime. A licensee money lender can take interest on his money only as per bank’s rate of interest. He cannot exceed the bank’s norms. The license for money lending is issued by District Collector.

Cases of demanding excessive interest on money lent during emergency are on the rise. It is very common that too much interest on the borrowed amount makes it difficult for the borrower to pay back in specific time. As a result, lenders even resort to threatening which depresses the borrower to the extent of suicides. It has been reported that even police accepts the fact that some people lend money only for framing purposes. No action has been taken in such cases till date. Money lenders force the borrowers to sign blank cheques and stamp papers while lending them money. In most of the cases when the borrower is unable to pay back in time, the lenders threaten to frame them in a case of cheque-return.

Provision of legal action against unlicensed lenders

There is a provision of legal action against unlicensed money lenders. Case can be registered under IPC Section 420 and 406. Section 420 is for cheating and dishonesty. Whoever cheats and thereby dishonestly induces the person deceived any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine. Section 406 is punishment for criminal breach of trust. Whoever commits criminal breach of trust shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

 It has been brought to notice that many money lenders are active in the city who are dealing in dishonest manner with their customers. In one such case, a person committed suicide after being constantly harassed by the money lenders. In another case, a man borrowed 7 lakh rupees but returned around 27 lakh rupees which included the interest amount. He is being threatened by the lender even now. Cases have been registered against Dinesh Sharma, Vipul Goyal, Sunil Goyal and Balvinder Chhabra by Rajendra Sharma of Ashok nagar.

AD SP city Sudhir Joshi said that police handles the victim’s report on priority and action is taken the accused at the earliest. A number of people have been arrested in such cases. Even the income tax department has been looped into these cases of money lending and they work hand in hand with the police.

Source : bhaskarnews