The Hindu : Karnataka / Bangalore News : Norms on handling cheating cases issued

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Friday, Aug 29, 2008
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Karnataka

Karnataka - Bangalore

Norms on handling cheating cases issued

Staff Reporter

Police to probe complaints against firms offering exorbitant interest rates
Cell to collect intelligence on violation of the Acts to be set up

BANGALORE: The city police have come out with guidelines for policemen on handling cases of cheating and exploitation by finance firms, moneylending units, prize chit and money circulation schemes. The guidelines come days after Corps of Detectives revelations that Viniv Inc had cheated the public of Rs. 203 crore.

“Though the police have been entrusted with responsibility of booking offences under (existing) laws, negligence by the police has given scope for exploitation,” Police Commissioner Shankar M. Bidari told reporters on Thursday. Mr. Bidari was speaking about booking cases for violation of the Karnataka Moneylenders’ Act 1961, Karnataka Money Lenders Rules 1965, Karnataka Pawn Brokers Act 1961, Karnataka Pawn Brokers Rules 1966, Karnataka Prohibition of Charging of Exorbitant Interest Act 2004, and The Prize Chits and Money Circulation scheme (Banning) Act 1978.

“These Acts have been in existence from 1961,” he said. The guidelines ask the police to investigate complaints of cheating by firms such as Viniv Inc and Quest Net that have collected money from people by promising exorbitant interest rates.

Exploitation

Moreover, Mr. Bidari pointed out, some moneylenders and pawnbrokers were hiring gangs of antisocial elements to extort interest from debtors. “Such anti-social elements have given scope for violent incidents, including molestation, for recovering dues,” he said.

The investigation officers have been asked to search the place of business and recover documents such as promissory notes, original property records, gold and silver ornaments. The police officers have been asked to freeze bank accounts of the accused persons under Section 102 of Criminal Procedure Code.

If the value of the seized property is more than Rs. 10 lakh, the police officers have been told to give the information to the Income Tax department for appropriate action. “Investigation should be done diligently and properly on a day-to-day basis and final report should be submitted within three months,” Mr. Bidari said.

Intelligence cell

The city police will shortly start a separate cell in the Central Crime Branch to collect intelligence regarding the violation of the four Acts. A list of moneylenders, chit firms, pawn brokers will be maintained and appropriate action taken. The Deputy Commissioners of Police have been asked to make their personnel aware of the provisions of the four Acts.

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