CPI asks AP. govt. to take a cue from TN on loan recovery bill

CPI State secretary K. Ramakrishna on Wednesday (June 18) urged Chief Minister N. Chandrababu Naidu to introduce a stringent legislation to criminalise forced loan recovery and proposed measures similar to those recently adopted by Tamil Nadu.

In a letter, Mr. Ramakrishna pointed out the abuse of borrowers at the hands of private finance companies, online loan apps and moneylenders. He noted widespread reports of harassment, threats, asset seizures and other illegal practices targeting borrowers already under financial stress.

He cited alarming incidents, including large-scale call-money loan rackets previously uncovered in Vijayawada and a recent case near Kuppam wherein a woman was reportedly tied to a tree and assaulted by moneylenders demanding repayment of her husband’s dues. These disturbing developments, he stated, demand urgent action.

The CPI leader urged the government to take a cue from Tamil Nadu on the loan recovery Bill. The Tamil Nadu Assembly recently passed a bill making forced loan recovery a non-bailable offence, punishable by up to five years in prison.

The Tamil Nadu Bill imposes non-bailable jail terms on lenders if a borrower commits suicide due to coercion. “Private finance outfits and moneylenders are using coercive tactics that violate basic human rights and the rule of law,” Ramakrishna said. “We need similar legal safeguards in Andhra Pradesh to protect vulnerable citizens,” he added.

Published - June 18, 2025 07:35 pm IST