Itanagar, March 15 (PTI): Arunachal Pradesh Assembly today passed the Money Lending (Regulation) Bill 2018 to contain unregulated money lending prevalent in the state which rendered people vulnerable at the hands of money lenders.
The Bill would pave the way to regulate money landing through regular checking by authorised officers to protect the debtors from exploitation.
As per the clauses of the Bill, whoever carries on the business of money lending without obtaining a valid license from the government, will be punished with imprisonment for up to five years, or with fine which might extended to Rs 5 lakh, or with both.
"The money lending practice has paved the way for extortion and other unlawful activities in the state as the debtors were forced to commit crime to earn money to repay their loans," Home Minister Kumar Waii said.
People even were forced to sell their properties to repay the loan and even several cases of divorce were reported in the state because of this, he said.
Deputy Chief Minister Chowna Mein who also holds the finance portfolio had introduced the Bill on March 9. It was passed by voice vote.
