Police warned the Money lenders

Hyderabad, March 13: As we know that, Public have facing cash crunch problem there are some reasons behind this. One is demonetization another one is to get liquid cash and additional tax charges.

After the With money-lenders in the city charging borrowers exorbitant amounts of interest due to the shortage of liquid cash and restrictions of bank account withdrawals post demonetisation, the south zone police are all set to crack the whip against them from coming week.

Most of the lenders operating in the city are doing so without any licence contrary to the law, said officials.

Police officials said that post demonetisation, the public had no option but approach money-lenders, who took advantage of the situation.

"Most of the people needed money to conduct weddings in their families or to pay school and college fees of their children," said a senior official. He added that the police had been keeping an eye on lenders in the past few months.

People in dire need of cash were being forced to pay as much as 150% interest, said south zone police officials. "ATM or debit cards of salaried employees are kept by the lenders, so that when their salary comes, they can even swipe the card and take the money," pointed out an official.

He added that generally those who did not get loans from banks borrowed from money-lenders at about 18 to 20% interest per year.But the extraordinary monetary situation post demonetisation had led to a lot of exploitation, stated the official.

"They keep land documents as a mortgage. The lenders are mostly businessmen and gold shop owners," explained the police official.