There is a ban on money lending in Madhya Pradesh and only those who have a license for money lending can extend loans.
In a radical move, the Kamal Nath government in Madhya Pradesh announced on August 9 that all loans contracted by tribals from unofficial sources would be deemed ‘discharged’.
In other words, tribals who have taken loans from unofficial lines of credit, such as from traditional money lenders, would not have to repay them. The government would not repay those loans either.
The announcement came on International Day of the World’s Indigenous People that is commemorated on August 9 every year.
Madhya Pradesh Chief Minister Kamal Nath, while speaking at a function in Chhindwara, on Friday announced that tribals who have taken loans from ‘sahukars’ would not have to repay them. The announcement would be effective in 89 out of the 313 blocks in the state that are designated as tribal blocks.
Sources in the government said that they are not clear on the exact amount or type of loans that would be rendered discharged.
Kamal Nath, however, said that a total of 1.5 crore tribals in the state would benefit from the law.
Leave a Reply