Governor Approves New Debt Recovery Law
Tamil Nadu Governor R.N. Ravi gave his assent to a new debt recovery law to prevent coercive debt collection practices. The new law provides for up to five years' imprisonment for those who resort to intimidation or confiscate property from the borrowers.
Bill Moved to Prevent Coercive Lending Practices
The bill was brought in by Deputy Chief Minister Udhayanidhi Stalin on April 26 in the Tamil Nadu Legislative Assembly. The bill is intended to prevent lenders from harassing or intimidating borrowers to recover loans.
Penalties That Are Included in the New Law
The law covers:
- Imprisonment for five years at the maximum
- Fining ₹5 lakh
- Sentencing to punish a borrower's suicide due to harassment
- Refusal to grant bail for such crimes
Governor's Approval Completes the Process
The Assembly passed the bill, and it was sent to the Governor. After reviewing it, Governor Ravi approved the bill.
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