Andhra Pradesh   

Law to curb moneylenders

HYDERABAD: The State government has decided to introduce a comprehensive law during the next session of the Assembly to control high rate of interest charged by private moneylenders on crop loans.

The government planned to bring in this law four years ago but kept it in abeyance following the Centre’s announcement then that it would introduce a legislation to deal with the private moneylenders.

As such a law was not enacted, the State government is going ahead with its plan. A draft bill incorporating the best features of existing Acts dealing with chit funds and moneylenders, was approved in principle by the Cabinet Sub-Committee appointed by Chief Minister Y. S. Rajasekhara Reddy on the subject, at its meeting here on Friday.

Finance Minister K. Rosaiah who chaired the meeting, told reporters here on Saturday that moneylenders were charging heavy interest going up to 20 per cent, taking advantage of the farmers’ dire situation.

He said the proposed law would also cover micro-financing firms, apart from private moneylenders. The government would not create an enforcement wing to implement this law but use the existing administrative machinery.

Mr. Rosaiah said, cheques to the farmers not covered by the Central loan waiver would be distributed at melas from July 8 to 15.

The melas would be continued later if farmers were left out.

Quoting a survey conducted by the Ministry of Statistics & Programme Implementation, the Minister said, AP ranked second in the country in implementation of the 20-point programme for 2007-08. The State held 21st rank in 2002-03 as no interest was taken on the programme.

The Finance Minister made it clear here that there was no plan with the government to relax the retirement age for government employees up to 60 years as wasbeing speculated among the staff.

As such, many unemployed youths were awaiting jobs, he added.

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