Mumbai: The Maharashtra government has announced a statewide crackdown on unauthorised moneylenders and plans to amend the Maharashtra Money-Lending (Regulation) Act, 2014, following a shocking case in Chandrapur where a farmer was allegedly forced to sell his kidney to repay a loan.
Minister Pankaj Bhoyar Informs House of Plans to Strengthen Existing Law
Minister of State for Home rural, Pankaj Bhoyar informed the State Assembly that the existing law will be strengthened to curb illegal lending practices and protect vulnerable borrowers. He was replying to a debate on the incident involving a marginal farmer from Nagbhid taluka in Chandrapur district who was reportedly coerced into travelling to Cambodia to sell his kidney after being trapped in a spiralling debt cycle.
According to information placed before the House by MLAs including Atul Bhatkhalkar and Sudhir Mungantiwar, the farmer had initially borrowed Rs 1 lakh from a private moneylender. Due to exorbitant interest rates, the amount allegedly escalated drastically. Despite selling his land and motorcycle, he could not clear the dues. Medical reports later revealed that he had travelled to Cambodia, where one of his kidneys was removed in December 2025.
Six Unlicensed Lenders Arrested
Bhoyar said six unlicensed moneylenders linked to the case have been arrested and orders have been issued to attach their properties. An additional two accused have also been taken into custody. In the wake of the incident, the government constituted a Special Investigation Team (SIT) to probe what appears to be an international organ trafficking syndicate.
Preliminary findings suggest that although the victim had already repaid Rs 48.53 lakh against a principal loan of Rs 9.15 lakh, he was still pressured into the organ trade. The investigation has revealed links stretching from Solapur to Trichy in Tamil Nadu and Phnom Penh in Cambodia. A middleman from Solapur is suspected of facilitating kidney sales for at least ten individuals.
Government to Consider Invoking MCOCA
The minister told the House that the government will examine provisions to invoke the stringent Maharashtra Control of Organised Crime Act (MCOCA) against the accused moneylenders. He added that criminal action under laws related to illegal money-lending and human organ trafficking would be pursued wherever applicable.
To tighten oversight, the government has already constituted three-member administrative committees in each district under the chairmanship of the respective District Collectors, in accordance with government resolutions issued in January 2017 and July 2025. These committees are empowered to form flying squads, streamline action against illegal moneylenders and submit quarterly reports to the state government.
Bhoyar said that despite the availability of cooperative institutions, credit societies and nationalised banks across the state, the number of private licensed and unlicensed moneylenders has increased, particularly in rural areas. He assured the Assembly that the government is committed to dismantling illegal lending networks and preventing vulnerable farmers from falling prey to exploitative debt traps and criminal rackets.
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