Tackling the ongoing call money scandal that has impacted several lives in Vijayawada, the Andhra Pradesh Legislative Assembly on Monday passed a bill that aims to regulate private money lending business in the state.
The new Andhra Pradesh Money Lenders Bill, which was moved by the Deputy Chief Minister, Home, N Chinna Rajappam, was passed by the Assembly.
Andhra Pradesh Money Lenders Bill states that money lending cannot be done without a license, and the government may, from time to time, specify the maximum rate of interest chargeable by money lenders in any local area.
As per this act, accounts of money lenders shall be audited at least once in a year and punishment for charging a rate of interest higher than that shown in the account is up to one year that may extend up to three years.
G Buchaiah Chowdary from Telugu Desam Party and BJP floor leader Vishnukumar Raju stated that the borrowers are getting into a vicious trap with private lenders charging exorbitant rates.
The opposition brouhaha from the YSR Congress continued, where the party boycotted the proceedings in protest against the House for not taking up the much needed debate on the call money racket and not reviewing the suspension of the YSRCP party member R K Roja. The yesteryear actress and politician was suspended for one year starting last week for using unparliamentary comments on the Chief Minister, Sri N Chandrababu Naidu.
Call money racket has been in vogue in Vijayawada where the lenders were harassing and exploiting the borrowers by way of providing easy loans ‘on telephone call’.
Close to 188 persons were arrested in connection with the racket in the state post the matter surfacing earlier this month.