Chennai: Tamil Nadu police continue its crackdown on loan sharks in the state under ‘Operation Kandhuvatti.’
The trigger to the crackdown has come after a police constable committed suicide after being harassed by a usurious moneylender.
On Sunday June 12, police arrested three people for usury and registered cases against 11 people.
Tamil Nadu Director General of Police (DGP), C. Sylendra Babu has ordered the crackdown on usury after Selvakumar, constable of Armed Police battalion at Bhuvanagiri in Cuddalore district, committed suicide after being harassed by a woman moneylender.
Police arrested 116 money lenders in 77 cases in several districts and conducted raids at 39 residences. Property documents that were taken as security were seized by the police and handed over to the affected borrowers.
During the raids blank signed papers of the borrowers were also seized. Police said that money lenders were squeezing borrowers by imposing exorbitant interest rates. The categories of the interest rates, according to police, are ‘meter vatti’, ‘dina vatti’ and ‘kandhu vatti’ among others.
The state police have warned that those who are squeezing ordinary people, who have taken money out of necessities, and driving them to suicide would face stringent action.