Jhabua (Madhya Pradesh): Four moneylenders were arrested for extortion as they were charging a high interest from borrowers and booked them under the Madhya Pradesh Protection of Debtors Act, 1937. The arrested are Mahendra Garwal of Thandla, Soni Garwal of Thandla, Pradeep Soni of Jhabua and Yogesh Jain of Jhabua.
In a significant move to combat illegal money lending practices, Jhabua police have intensified their efforts under the leadership of SP Padmavilochan Shukla. He instructed all station in-charges and SDOPs to take stringent action against moneylenders who exploit the financial ignorance of residents.
Many residents in Jhabua district are not well-versed in banking procedures, making them vulnerable to predatory lending practices. Moneylenders often take advantage of this lack of knowledge, ensnaring individuals in cycles of debt with exorbitant interest rates. In a recent case, a crime was registered against four moneylenders with the Kotwali police station for charging excessive interest beyond the principal amount.
This action was initiated following a complaint from Padma Soni, whose husband was targeted by these lenders. The accused have been charged under Sections 3 and 4 of the State Protection of Debtors Act, 1937. Jhabua police urged all residents to borrow money only from recognised financial institutions or banks to avoid potential financial losses.
