Won’t take action against money-lenders: State to HC

The state government has told the Nagpur bench of Bombay High Court that no coercive action will be taken against money-lenders pending disposal of petitions challenging a government resolution in the matter.

The government had decided to pay private money-lenders the amount of loan taken by farmers, and told money lenders to free mortgaged property of farmers. However, over 200 money-lenders challenged this before the HC. They argued that farmers do not necessarily take loans for farming under the head of ‘farm loan’. When they take a general loan, the interest charged is more. Hence, money-lenders would incur a loss if the government repays the loans at the rate of interest of farm loan.

The government counsel told the court that no “coercive action” will be taken during pendency of the petition. The next hearing is on July 2.