Private money-lending business banned in Jharkhand

The act also slaps a fine of Rs 5,000 on the first offence and Rs 10,000 if the offender committed it for the second time, besides the respective jail terms, the release said.

By: PTI | Ranchi | Updated: November 25, 2016 9:36 pm
Defunct notes, demonetisation, Rs 500, Rs 1000, defunct currency notes, demonetised currency notes, news, latest news, India news, national news The release quoted Development Commissioner Amit Khare as saying that the menace had affected innocent villagers, particularly the tribals.

The private money-lending business has been banned in Jharkhand with the recent enactment of a law, an official release said on Friday. The ‘Jharkhand nizi sahukar (nishedh) vidheyak 2016’ (private money-lending (ban) bill, 2016) was passed by the Assembly recently and the act would bar ‘shaukari’, ‘mahajani’, and ‘sudhkhori’ (private money-lending/usury), the release said here.

The act also slaps a fine of Rs 5,000 on the first offence and Rs 10,000 if the offender committed it for the
second time, besides the respective jail terms, it said. The release quoted Development Commissioner Amit Khare
as saying that the menace had affected innocent villagers, particularly the tribals. He, however, explained that there was no bar in giving interest-free loans. The act only bars private loans on interest or keeping something as mortgage.

Earlier, Jharkhand had adopted the ‘Bihar sahukar adhiniyam 1974,’ but it only dealt with controlling money-
lenders, the release said.