PUCL Bulletin, April 2004
Andhra Pradesh PUCL
Illegal activities of money lenders
Hyderabad and other poverty-stricken areas of Andhra Pradesh are now in the clutches of high interest charging money lenders.
Citizens of the Old City and industrial areas like Musheerabad, Azamabad, Sanathnagar, Katedhan, Kukatpally, and Patancheruvu are living in state of terror due to the illegal and violent activities of money lenders who charge anything from 6% to 20% per month on the money they lend. Most money lenders don’t have any license yet they operate with impunity. As a result of their activities many attempt suicide. Most of these cases are not reported since dependents are ashamed and also afraid of police harassment.
Policemen take little notice of the illegal activities of money lenders.
- The Police Department should initiate action against illegal money lending activities.
- Money lending by licensed money lenders should be monitored as they are charging higher interest than is allowed under law:
- Banks should come forward to lend money to the poor and lower middle class people.
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