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
NCST Holds Review Meeting with NHPC
NCST Holds Review Meeting with NHPC on Implementation of Safeguards for Scheduled Tribe Employees
MP CM Collector Award Niti Aayog
Sampurnata Abhiyan: Madhya Pradesh Leads NITI Aayog Campaign; Collectors from 8 Districts Win Gold
Mohan Yadav
MP CM Mohan Yadav Pushes for Sustainable, Community-Driven Rural Water Policy; Targets 100% Tap Coverage by March 2027
Ajay Bhadoo IAS
IAS Ajay Bhadoo Gets Extended Term as DGFT - What It Means & His Career Journey
THDCIL_Receives_ABMS_Certification_for_Integrity_and_Transparency
THDC India (THDCIL) Awarded ISO 37001:2016 Anti-Bribery Certification by BIS - Details Inside
Ministry of Environment
Environment Ministry Clarifies Petrol Vehicle Tender, Cites E-Vehicle Flexibility
Bokaro Steel Plant
PESB Selects Priya Ranjan to Head Bokaro Steel Plant, SAIL’s Key Production Unit
REC Limited wins ‘Best Design Thinking Award’ at 5th Distinguished NBFC (DNA) Awards
REC Limited Bags ‘Best Design Thinking Award’ at 5th Distinguished NBFC Awards
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr
Resisted Flawed Schemes, Transferred Thrice In Three Months, Found Solace In Writing
WhatsApp Image 2025-08-11 at 4.48
IAS SVR Srinivas on Mumbai Trans Harbour Link, Tough Calls, and the Real Power of IAS Officers | Video Interview
WhatsApp Image 2025-08-08 at 5.25
Dharavi Redevelopment: IAS Minds Turning 100-Year-Old Slum into a Modern City | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IFS S Krithiga
Eco-Friendly Cottages, Tribal Cuisine, and Conservation: Inside Tamil Nadu’s Pachamalai Project
NCST Holds Review Meeting with NHPC
NCST Holds Review Meeting with NHPC on Implementation of Safeguards for Scheduled Tribe Employees
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr
WhatsApp Image 2025-08-11 at 4.48
WhatsApp Image 2025-08-08 at 5.25
ADVERTISEMENT
ADVERTISEMENT