Judicial Commission to probe private lending activities in AP

The Andhra Pradesh cabinet today decided to appoint a judicial commission to probe the illegal private lending in the state which is in news due to the infamous 'call money rackets', and the alleged sexual exploitation of women borrowers in some cases.
In a related development, Vijayawada Police Commissioner D Goutam Sawang today said he had cancelled his leave in view of the ongoing investigation.
'Call money' refers to a mode of private lending where loan is made available instantly at borrower's doorstep but at exorbitant rates, and the lender can demand repayment anytime over a call. The pressure on the Chandrababu Naidu government to act against such private lenders, who sometimes usurp the mortgaged assets of borrowers, is increasing.

Finance Minister Yanamala Ramakrishnudu told reporters after the cabinet meeting that the commission would be headed by a retired High Court judge.
"We are planning to bring Money Lending Bill in the Assembly Session (which starts tomorrow). The cabinet also gave approval. There is a need to go deep into the issue of illegal money lending and related sexual harassment. So the cabinet has decided to appoint a judicial commission which will submit a report to the government," Ramakrishnudu said.
He did not specify when the commission would be appointed and the time-frame for submission of report.

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The City Police Commissioner D Goutam Sawang said the police had conducted raids at 107 places and detained 75 persons for questioning. The investigation and raids will continue and they didn't have any timeframe, he said.

The Andhra Pradesh Police today cracked down on illegal money lenders across the state and seized blank cheques, promissory notes among other things.
YSR Congress president and opposition leader Y S Jaganmohan Reddy had yesterday met the governor ESL Narasimhan and requested him to order a judicial probe.
Meanwhile, Commissioner Sawang, who was to go on leave from today, said he had cancelled it in view of the seriousness of the call money racket case.
DGP J V Ramudu had yesterday said the Commissioner was going on a pre-planned 10-day leave for personal reasons and it had nothing to do with the ongoing investigations. There was speculation that Sawang was under political pressure to go on leave.

Sawang had earlier said he had got the leave sanctioned a month ago, and was visiting his relatives in USA. But today he said he requested the DGP to allow him to cancel the leave to pursue the investigations.
"I feel it is not desirable to leave the place at this critical juncture," he said, adding that normally he celebrated the Christmas in USA with his family members.
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According to the investigators, the interest rates of private lenders are as high as 10-15 per cent per month in some cases, and they use strong-arm tactics to seize the mortgaged assets in case of default.

Chief Minister Naidu has asked the district collectors to invoke the stringent 'Nirbhaya Act' amendment provisions against the anti-social elements who harass women borrowers.
Meanwhile, Muppalla Subba Rao, a member of Bar Council of Andhra Pradesh, today demanded that the government pass a law to make registration of promissory notes mandatory to curb this menace.