Raid against illegal money lenders in state to continue

The Kerala government today decided to intensify its crackdown on unlicensed money lenders, known in local parlance as 'blade companies', taking a serious view of incidents of intimidation of borrowers.
The ongoing raid on 'blade mafia' in the state has made an impact and the cabinet has reviewed the action taken so far by the police, Chief Minister Oommen Chandy told reporters here after a cabinet meeting.
The situation created by the blade mafia would not be allowed to continue, and government would see to it that the common man and the poor can avail loans from banks in the state at relaxed norms and conditions, he said.

Government has asked the lead bank to convene a meeting of the state-level Banking Committee on May 22, he said.
The government will ask district collectors to hold meeting with banks in respective districts, while the co-operation minister will hold talks with cooperative and district co-operative banks in the state to explore means by which the common man could avail loans on relaxed norms.
Financial agencies under the government will also be urged to address the situation, he said.

Sanctioning of small-scale loans through 'Kudumbasrees' and 'Matsyafed' are the other options considered, he said.
Instructions will be given to check whether the Kerala Money Lending Act was strictly adhered to by financial establishments and also follow guidelines of the RBI.

Special care would be taken to see that Kerala Prohibition of Exorbitant Interest Act was effectively implemented.
The issue of illegal money lenders came to the fore recently following the suicide by five members of a family here recently due to indebtedness and threat by money lenders.
On other decisions, he said government has decided to amend the 1956 Hindu Succession Act, making only wife and children the real inheritors of the assets of a deceased son in the event of his mother's death.
The cabinet also decided to request the Governor to convene the next Assembly session by June 9. The issues pertaining to the Mullaperiyar dam will also come up for discussion in the Assembly, he said.

The Cabinet also decided to appoint Antony Chacko, Director (Operations) of HMT Bangalore, as new Chairman and Managing Director of Kerala State Road Transport Corporation, he added.