Govt mulls law to curb recovery of loans by financiers using gangsters

‘The govt can’t turn a blind eye to the presence of mafia for loan recovery proceedings’

THIRUVANANTHAPURAM: Revenue Minister E Chandrasekharan said in the Assembly the state government will actively consider enacting suitable legislation to put an end to the practice in which private financial institutions use mafia gangs for loan recovery proceedings. It was P T Thomas, MLA, who brought the issue related to loan recovery proceedings by private institutions to the attention of the Minister during Question Hour on Thursday. 

“The government can’t turn a blind eye to the presence of mafia gangs for loan recovery proceedings. To address the same, it will be considered whether stringent legislation is needed,” said Chandrasekharan. The Minister also said that a decision has been taken by the government to examine the issues, including social issues, related to loan recovery by private institutions and to make necessary interventions. 

Earlier, answering a question, the Minister said with the moratorium on the recovery of farm loans extended till December 31, officers have strictly been instructed not to proceed with recovery proceedings during the period. If such cases come to notice, further action will be initiated, said the Minister.

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