https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Banks vs Sharks: The Battle for Financial Freedom in Gujarat

Former Police Commissioner of Surat, Ajay Tomar, initiated a crackdown on unregistered moneylenders in Gujarat. By meticulously documenting cases and collaborating with regulatory bodies, he aimed to protect vulnerable borrowers from financial bondage. Current DCP Rupal Solanki explains the charges taken against the unscrupulous private moneylenders
Indian Masterminds Stories

In recent years, the state of Gujarat has witnessed a disturbing trend – a rise in cases of harassment, exploitation, and violence perpetrated by private moneylenders. What begins as a simple loan transaction too often ends in tragedy, with borrowers driven to despair, and in some cases, to the ultimate act of desperation – suicide. Their cries for help made former Police Commissioner of Surat, (now) retired IPS officer Ajay Tomar, take firm steps towards the issue.

Indian Masterminds exclusively spoke with Mr. Tomar and the current DCP (Law and Order) of Surat, Ms. Rupal Solanki, to understand more about the vicious cycle.

PREDATORY PRACTICES

After realising that the citizens were afraid to approach the police in such cases, Mr. Tomar initiated a secretive data of moneylenders in Surat and checked with the government if they were registered or not. Only the registered ones were eligible to lend money to people at a fixed third term interest rate and not beyond that.

“In any case, they are not allowed to charge more that 1.5% per month, making it 18% per year, which was the maximum interest in case of unsecured loan. These interest rates are prescribed by the government,” shared Mr. Tomar.

He came to know from the complainants that despite being unregistered, these moneylenders were charging interest rates as high as 2%, 5%, and even 20% per month from them. The victims were not able to pay such exorbitant rates, forcing them to become bonded labourers in a way.

VICTIMS OF EXPLOITATION

Numerous heartbreaking stories emerged, showcasing the plight of borrowers victimized by unscrupulous moneylenders. Ramesh Koli’s case from Surendra Nagar district exemplifies the ruthlessness of these lenders. Despite repaying his loan principal and an inflated interest amount, he faced relentless demands for further payments under the threat of dire consequences.

The horrors extend beyond financial exploitation, with cases of physical violence and sexual abuse surfacing. In one instance, a woman from Rajkot was subjected to repeated rape after her husband failed to repay a meagre loan of Rs. 50,000. Such incidents underscore the brazen disregard for human dignity exhibited by these lenders.

Tragically, the despair caused by unmanageable debt drove some borrowers to take their own lives. In Ahmedabad, a man succumbed to the pressure of insurmountable debt, leaving behind a grieving family.

CALL FOR ACTION

Recognizing the urgency of the situation, Mr. Tomar and his team launched a concerted effort to curb the activities of predatory moneylenders. Special drives were initiated to crack down on unlicensed lenders and those flouting interest rate regulations. Moreover, district authorities were instructed to proactively address cases of harassment and exploitation, offering support to victims who may fear reprisals for seeking assistance.

“Stringent legal measures are being pursued to hold accountable those responsible for preying on vulnerable borrowers. We have been empowered to register cases under relevant sections of the Indian Penal Code, targeting offenders who engage in illegal seizure of property or resort to intimidation tactics,” current DCP, Ms. Solanki, shared with Indian Masterminds.

Additionally, the enforcement of the Prevention of Money Laundering Act and the Gujarat Money-Lenders Act serves as a deterrent against illicit lending practices.

LOANS MADE EASIER

Once the usurpers were cancelled out from the market, it became difficult for the needy to take loans which was necessary for their daily hawking businesses, health issues in the family, marriage of the family members, and other such cases.

“We organized meetings with the management of commercial and cooperative banks along with studying government micro finance schemes like SVANidhi. We discussed with the bank officials to meet the demand of micro finance of needy people,” Mr. Tomar told Indian Masterminds.

Some of the banks agreed to it, and till now, almost 100 crores worth of loan has been sanctioned to the people. The best part is that the banks’ recovery rate is almost 100%. Poor people are paying back their instalments timely, thus reassuring the bank management too. 

Wherein only 17 people had applied for registration as money lenders in 2022, almost 100 people had applied for registration after Surat Police’s drive in 2023, within the first two months itself. These people knew that the police would come down heavily on them if they start overcharging.

“In a way, we were able to give a comprehensive solution to the needy. The banks are happy, the poor are happy, and only the moneylending sharks are troubled,” Mr. Tomar said.

The harrowing tales of exploitation and tragedy emanating from Gujarat’s private moneylending sector demanded urgent attention and concerted action. With the collaboration of regulatory authorities, law enforcement agencies, and civil society, the Gujarat Police was able to successfully dismantle the predatory networks that thrived on the misfortune of others.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Odisha Government
Odisha Elevates Two Promising IFS Officers to Senior Time Scale, Strengthening Forest Leadership - Know More About Them
Yogi Adityanath UP
Uttar Pradesh Floods: CM Yogi Adityanath Forms ‘Team-11’ for Swift and Transparent Flood Relief Across 12 Districts
DGR Job Fair
DGR Job Fair 2025 Held in Delhi to Empower Ex-Servicemen with Career Opportunities in Emerging Tech - Details Inside
omc
Odisha Mining Corporation (OMC) Begins Dispatch from Dubna Mines, Strengthening Supply Chain and Industrial Growth
NFDC
NFDC Launches Free Residential 3D Animation & VFX Training for North East Youth - Here's All You Need To Know
CM Yogi
CM Yogi Adityanath Reviews Rs. 42,891 Crore Development Proposals for Lucknow Division, Emphasizes Timely, Inclusive Execution
Mahanadi River
Chhattisgarh CM Vishnu Deo Sai Assures Odisha of Consideration on an Amicable Solution to Mahanadi Water Dispute
MP News
Madhya Pradesh CM Dr. Mohan Yadav Pays Tribute to Pt. Ravishankar Shukla on His Birth Anniversary
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Karn Satyarthi
How IAS Karn Satyarthi Transformed Gumla Through Empathy and Innovation
Ananth Rupanagudi IRAS
IRAS Ananth Rupanagudi’s Take on Corruption, Reform, and Duty
WhatsApp Image 2025-07-26 at 13.16
What Most Indians Don't Know About Jim Corbett
ADVERTISEMENT
UPSC Stories
BPSC Bihar police
From Lantern Light to Police Uniform: How Praveen Kumar from a Small Bihar Village Cracked BPSC to Become SDPO
From a lantern-lit village in Bihar to becoming an SDPO, Praveen Kumar's journey is a testament to resilience,...
IAS Priyansha Garg
Why Mindset Matters: IAS Priyansha Garg’s Mental Health Mantra for UPSC
After two failed prelims, Priyansha Garg cracked UPSC with AIR 31 in her fourth attempt, proving how...
Ashish Akshat
From Setback to State Topper: How Ashish Akshat Topped JPSC While Working Full-Time
Ashish Akshat from Dhanbad topped JPSC 2023, proving that resilience, discipline, and family support...
Social Media
Mudumalai Tiger Reserve
Mudumalai Tiger Reserve: From India’s First Sanctuary to a Tiger Conservation Success Story | International Tiger Day Special
IAS Supriya Sahu Hails Mudumalai's Role in Tiger Conservation on Tiger Day. Declared in 1940, Now Among...
Mangroves
Mangroves: Nature’s Shield Against Disasters, Says Officer Parveen Kaswan on Mangroves Day - Watch His Post Here
Mangroves, with their dense, interlaced root systems, form a mesh-like structure that serves as a buffer...
Retired IPS Inderjit Singh Sidhu
Purpose Doesn’t Retire: How 88-Year-Old Retired DIG Becomes Chandigarh’s ‘Quiet Warrior’ of Cleanliness
Inderjit Singh Sidhu’s Dawn Patrol Earns Applause, Mahindra’s Praise for a Man Who Chose Action Over...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Odisha Government
Odisha Elevates Two Promising IFS Officers to Senior Time Scale, Strengthening Forest Leadership - Know More About Them
Yogi Adityanath UP
Uttar Pradesh Floods: CM Yogi Adityanath Forms ‘Team-11’ for Swift and Transparent Flood Relief Across 12 Districts
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Karn Satyarthi
Ananth Rupanagudi IRAS
WhatsApp Image 2025-07-26 at 13.16
ADVERTISEMENT
ADVERTISEMENT