Latest news with #TamilNaduMoneyLendingEntities
India Today
01-05-2025
- Politics
- India Today
Tamil Nadu farmer dies by suicide after harassment by loan recovery agents
A 55-year-old farmer in Tamil Nadu's Salem district died by suicide, following alleged harassment by loan retrieval agents. His death came just two days after the state Assembly passed a Bill to curb coercive recovery a resident of Thukkiyampalayam near Vazhapadi in the district, had borrowed Rs 4.80 lakh from a private bank, pledging his land as collateral. He was reportedly confronted by the bank's loan retrieval agents on Tuesday for having defaulted on an April 10 instalment. According to his family members, the agents behaved aggressively and refused to grant him any extension to repay the men came and asked for money. He had two days' time earlier but as he couldn't get the money, he asked for more time. But the two guys refused to leave and demanded the money,' said a relative of Vadivelu, who witnessed the exchange. 'Even I requested them to leave, saying that if we had money, we would have given it but they asked me to either pay or be quiet so I left from the place.' 'I saw them keep asking him again and again. They were repeatedly telling him to give the money, and do other work and didn't let him leave,' the relative added. Later that day, Vadivelu reportedly consumed pesticide and died. His death triggered unrest in the village, with residents demanding justice and initially refusing to accept his body. In response, Vazhapadi Police detained the manager of the private bank for questioning. Only after this development did Vadivelu's relatives agree to accept the incident comes close on the heels of the state Assembly passing the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill earlier this week. The Bill, introduced by Deputy Chief Minister Udhayanidhi Stalin, aims to prohibit aggressive loan recovery methods by private moneylenders and recovery in the Assembly, Udhayanidhi Stalin had said that unethical recovery processes were becoming common and that such harassment had already pushed many to suicide and destroyed families. The new legislation provides for stringent action against those found guilty of such practices. Under the Bill, if a borrower dies by suicide due to harassment, the responsible party may be charged with abetment to suicide under Section 108 of the Bharatiya Nyaya Sanhita (BNS).Police have initiated further investigation into the circumstances of Vadivelu's death.
Hindustan Times
30-04-2025
- Politics
- Hindustan Times
Tamil Nadu assembly approves bill to curb coercive loan recovery
The Tamil Nadu assembly on Tuesday passed a bill that proposes stringent punishment against loan sharks to protect economically weaker sections. 'The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill, 2025, was drafted because it was necessary to provide a statutory framework to protect vulnerable groups from the aggressive tactics used by money-lending firms,' Deputy chief minister Udhayanidhi Stalin said. 'The money-lending entities are resorting to unethical methods of debt recovery from borrowers who are already in financial distress. These actions sometimes drive borrowers to take their own lives, shattering families and disturbing social order,' the bill read. 'The bill prohibits money-lending entities or their agents from using coercive actions against borrowers or their families during loan recovery,' Udhayanidhi said. 'If harassment from such entities leads to a borrower or family member dying by suicide, the firm and its agents could face charges for abetment to suicide under Section 108 of the Bharatiya Nyaya Sanhita, 2023.' Besides this, the assembly also passed a bill that transfers the powers of the Governor-Chancellor to the government in the appointment and removal of the Vice-Chancellor of the Tamil Nadu Physical Education and Sports University. This comes after the Supreme Court in its landmark order setting timelines for governors said that the bills readopted by the Tamil Nadu assembly were deemed as having received assent. 'In the said State University Laws, the Government has been empowered to appoint and remove the Vice-Chancellor of 18 Universities. On the same lines, Government has decided to empower themselves to appoint and remove the Vice-Chancellor of the Tamil Physical Education and Sports University,' the bill said.
Hindustan Times
29-04-2025
- Politics
- Hindustan Times
18 Bills adopted, Tamil Nadu Assembly adjourned sine die
Chennai, Tamil Nadu Assembly on Tuesday adopted as many as 18 Bills including the Tamil Nadu Money Lending Entities , Bill 2025 and the House was later adjourned sine die by Speaker M Appavu. When a Bill to amend the Goondas Act, to bring economic offences and violations of Bio-Medical Waste Management Rules under its ambit was taken up for scrutiny, main opposition AIADMK's Thalavai Sundaram spoke on dumping of waste from Kerala. Viduthalai Chiruthaigal Katchi's SS Balaji wanted "hazardous waste," to be included in the amendment and Minister for Housing, Prohibition and Excise, S Muthusamy said the proposals would be considered and later the Bill was declared passed. The Statement of Objects and Reasons of the bill to amend the Goondas Act said that Chief Minister M K Stalin had announced that persons indulging in economic offences would be detained under the Goondas Act and accordingly, the amendment Bill for that purpose. The statement further said improper disposal of bio-medical waste poses grave risks to public health and environment. There are frequent complaints about the dumping of such wastes in Tamil Nadu from the neighbouring states. The Madurai Bench of the Madras High Court in its order of November 15, 2023 observed that it is right time to book the violators of the Bio-Medical Waste Management Rules, 2016 under the Goondas Act by making suitable amendment. When the TN Money Lending Entities Bill, 2025 was taken up, members, including AIADMK's Agri SS Krishnamurthy proposed amendments to further strengthen the provisions to protect the interests of the common people. Deputy Chief Minister Udhayanidhi Stalin, who piloted the Bill said that such proposals would be taken up for consideration in the future. He moved an amendment to exempt banks from the applicability of the provisions related to coercive action against the borrower and said that it was on the advice of the RBI. This amendment was passed by a voice vote, incorporated and the Bill was adopted. This Bill is to prevent coercive means of loan recovery by money lenders including digital lending platforms. The Bill defines coercive action. Intimidating the borrower or any of his family members, obstructing or using violence, interfering with any property owned or used by the borrower are part of the description that shall constitute an offence. Using the service of private or outsourced or external agencies to negotiate or urging the borrower to make payment using coercive methods or by way of exerting undue influence are for specified offences include imprisonment upto three years and it may also further extend to five years or fine upto five lakh, or both. Thalavai Sundaram, speaking on the Bill to amend The Registration Act, 1908, in its application to Tamil Nadu, said that only courts could decide matters on title deeds and Minister for Commercial Taxes and Registration, P Moorthy replied that the amendment conforms to a Supreme Court judgment in this regard. The amendment introduces a new section 34-C which deals with production of original documents alongwith Encumbrance Certificate for registration and circumstances detailing other requirements, such as NOC from mortgagee for a subsisting mortgage. A Bill to establish Kalaignar University at Kumbakonam in the Cauvery delta region was passed. The Bill, to provide for the establishment and incorporation of the Kalaignar University, seeks to bifurcate Bharathidasan University, which presently caters to the educational needs of eight districts. "The Bharathidasan University is the only state university covering larger areas, and it finds difficult to cater to the needs of the students, especially in the coastal areas of the delta districts," the statement of objects and reason of the Bill stated. Bills to amend the TN Physical Education and Sports University Act, 2004 and the TN Lifts and Escalators Act, 1997 were among the Bills passed. The sports university amendment bill empowers the state government to appoint and remove the vice-chancellor of this varsity. Also, it removes disqualification, in conformity with the provisions of the Rights of Persons with Disabilities Act, 2016 . Grant of online permission and licence, "digitalise" all processes related to installation and working of lifts and escalators was a key aspect of the Objects and Reasons statement for amending the Lifts Act. Another important provision is decriminalising offences under the Lifts Act. The full title of the Goondas Act is: Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Cyber law offenders, Forest-offenders, Goondas, Immoral traffic offenders, Sand-offenders, Sexual-offenders, Slum-grabbers and Video Pirates Act, 1982. The short title, "Goondas Act," is the popular version. In total, 18 Bills were adopted after scrutiny and Leader of the House and Water Resources Minister, Duraimurugan moved a resolution for adjourning the House sine dine and it was passed. The Assembly was convened on March 14, 2025 and the state budget was presented that day.
Hindustan Times
26-04-2025
- Business
- Hindustan Times
Goondas Act to help prevent dumping of bio-medical waste in Tamil Nadu, Bill introduced
Chennai, Economic offences and dumping of bio-medical waste is all set to be dealt in Tamil Nadu by invoking the stringent Goondas Act, that facilitates detention upto one year. A Bill to amend the Goondas Act to bring economic offences and violations of bio-medical waste under its ambit was introduced in the State Assembly on Saturday. Also, the Tamil Nadu Money Lending Entities , Bill, 2025 was introduced in the House to prevent coercive means of loan recovery by money lenders including digital lending platforms. The Bill defines coercive action. Intimidating the borrower or any of his family members, obstructing or using violence, interfering with any property owned or used by the borrower are part of the description that shall constitute an offence. Using the service of private or outsourced or external agencies to negotiate or urging the borrower to make payment using coercive methods or by way of exerting undue influence are offences. Punishments for specified offences include imprisonment upto three years and it may also further extend to five years or fine upto five lakh, or both. Section 22 of the Tamil Nadu Money Lending Entities , Bill says: "If a borrower or any of his family members commits suicide and if it is proved that immediately prior to such suicide, the borrower or any of his family member was subjected to coercive action by the money lending entity which advanced the loan or its agents, such money lending entity and its agents shall be deemed to have abetted such suicide and deemed to have committed an offence under section 108 of the BNS, 2023." This Bill has provisions related to registration, regulations for transparency, dispute resolution and so on. The Statement of Objects and Reasons of this Bill said: "Tamil Nadu is a pioneer state in protecting people from usurious interest on loans, by regulating the business of money-lenders and pawnbrokers." Further, it said that recently, economically weaker and vulnerable sections of the society especially farmers, women SHGs, agricultural labourers, workmen, footpath vendors, dairy workers, construction workers, migrant workers "often fall prey to the attractive loans offered by money lending entities including digital lending platforms." They resort to unethical ways of recovering debt from borrowers who are already in financial distress, which sometimes instigates the suffering borrowers to commit suicide, thereby ruining many families which disturbs social order. "Therefore, it is considered necessary to provide a statutory framework to protect the economically weaker and vulnerable groups from undue hardships of coercive means of recovery by the money lending entities engaged in the business of providing loan to an individual or group of individuals or SHGs or Joint Liability Groups. Accordingly, the government have decided to enact a legislation to protect the people from the coercive actions of the money lending entities." The SoOR of the bill to amend the Goondas Act said that Chief Minister M K Stalin had announced that persons indulging in economic offences would be detained under the Goondas Act and accordingly, that Act would be amended suitably. The SoOR further said improper disposal of bio-medical waste poses grave risks to public health and environment. There are frequent complaints about the dumping of such wastes in Tamil Nadu from the neighbouring states. The Madurai Bench of the Madras High Court in its order of November 15, 2023 observed that it is right time to book the violators of the Bio-Medical Waste Management Rules, 2016 under the Goondas Act by making suitable amendment. In view of the repeal of the IPC and the CrPc by the Centre and the enactment of BNS and the BNSS, certain consequential amendments are required to be made in the Goondas Act, the government said. The full title of the Goondas Act is: Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Cyber law offenders, Forest-offenders, Goondas, Immoral traffic offenders, Sand-offenders, Sexual-offenders, Slum-grabbers and Video Pirates Act, 1982. It is popularly known as Goondas Act. All the Bills are expected to be passed on or before April 29, 2025.
