Maharashtra files eight FIRs against illegal moneylenders as drought hits farmers

Maharashtra has registered eight first information reports (FIRs) against private moneylenders accused of charging farmers illegal rates of interest, and two farmers have been given their land back, Hindustan Times reported on 10 November.

The action comes as drought covers about 85% of the State, according to the report. With crops lost, many farmers have turned to private and unlicensed lenders to get by.

Land returned in Latur

The two farmers are from Latur district. Their land was returned after an inquiry by the State’s cooperation department under the Maharashtra Money-Lending (Regulation) Act, 2014, PTI reported on 6 November. The Act sets limits on the interest licensed lenders can charge and makes lending without a licence an offence.

The government’s warning

The State government has barred the recovery of farm loans during the drought. It has warned banks, microfinance companies and moneylenders not to harass drought-hit farmers for repayment, and told the police to register criminal cases against anyone who uses threats or force to recover loans. Deputy Chief Minister Eknath Shinde has said no one who puts pressure on farmers to repay during the crisis will be spared.

The moneylenders named in the FIRs have not responded publicly, and none has been charged in court.

Why it matters

Debt is one of the main pressures on farmers in Maharashtra’s dry districts, such as Beed, Latur and Hingoli. The State has also promised farmers an advance relief payment of ₹5,000 for the drought.