Moneylending business thrives in Karwar

KARWAR: The murder of moneylender Mutturaj in Muttali at Bhatkal on Saturday has exposed the business of lending money for exorbitant rate of interest. His body was burnt to conceal evidence. Private moneylenders' merciless action against the defaulters has always ensured tragic ends, either to the moneylender or the borrower.
The moneylending business, locally called "meter baddi", has led to many attacks on the borrowers, which either drive them to commit suicide or move the court, seeking justice.The police, in spite of knowing the details of the moneylenders, wake up only when untoward incidents happen.
Two years ago, a government servant and his wife committed suicide in Avarsa near Ankola after a moneylender harassed them. The police temporarily acted against the moneylenders in the district, after which the latter conveniently returned to their business.
Usually, the moneylenders target small vendors like those selling vegetables/ fish/ household commodities on footpath and charge them interest anywhere between 20% and to 25% a month. Once the gullible borrowers get into the vicious circle, there is no way out. "Borrowers will end up getting threats from the moneylenders," Gajakrishna, a social worker from Karwar, said, adding: "As most of the banks refuse to lend money to small-time vendors without collateral security, these people walk into the trap laid by private moneylenders."
While lending money, these people collect blank cheques from the borrowers to blackmail them. They either threaten to present them to the bank or write huge sum on the cheque, only to create problems to the borrower. "In courts, the law favours such moneylenders. Courts must consider the motive of the petitioner while deciding on cheque-bounce cases. The police too should strictly act against private moneylenders," Gajakrishna said.
The brutal killing of Mutturaj should be an eye-opener to the law-enforcing agencies.