The Hindu : Kerala News : Illegal money-lending affects law and order in coastal areas

Online edition of India's National Newspaper
Wednesday, Jun 01, 2005

Kerala

Kerala - Others

Illegal money-lending affects law and order in coastal areas

G. Anand

Organised groups of local residents use force to recover loans

CALL FOR FAST: The Puthukurichi Powrasamathi had observed a fast to highlight the activities of the money-lenders on Sunday last. Photo: C. Ratheesh Kumar

PUTHUKURICHI: Illegal money-lending related disputes have resulted in kidnappings, forcible occupation of houses, extortion and appropriation of private property in the densely populated coastal area of Kadhinamkulam.

The Rural police and revenue authorities are being forced to intervene continuously to prevent such disputes from assuming a communal colour in Puthenthope, Puthukurichi, Marianadu and Perumathura areas.

On Sunday, the members of the Puthukurichi Powrasamathi had observed a fast to highlight the illegal activities of the so called "blade mafia", an organised group of local residents who lend money at usurious interest rates and use strong-arm tactics to recover the loan from defaulters.

The district police had recently given a report to the Government stating that the activities of the "blade mafia" could upset the peace that exists between the two-fisher folk communities in Kadhinamkulam. The police have also reported that the "blade mafia" was undermining the efforts of the civic committee constituted by the Government to settle money disputes between members of the different communities in a peaceful manner.

Two weeks ago, a youth who owed money to a local moneylender was kidnapped from his house in Puthukurichi and detained in fisher folk neighbourhood in Vizhinjam. His relatives were asked to pay up or else give signed blank cheques and promissory notes to secure the youth's release. The kidnapping had caused communal tension in the area and the police had to intervene to get the youth released.

The Circle Inspector, Kazhakottam, Muhammad Iqbal, said that there was a wide economic disparity between the two prominent fisher folk communities in the area. One community had a large number of their relatives working in the United Kingdom, Israel and the Gulf. This community had been lending money at high rates to the relatively less moneyed fisher folk sections. Some members of the economically backward sections earned a second income by lending the borrowed money.

The police said that the illegal money transactions amount to Rs. 20 crores. Much of the money has been invested in the Gulf, particularly Dubai. A small portion of the money has been given as loans for buying fishing equipment.

"Many local residents have sold or pledged their property and invested the proceeds with money lenders. Even if a single loan is defaulted, there is a chain effect in the community," a local resident said.

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