Maharashtra Co-operation Minister Babasaheb Patil told the Legislative Assembly on Monday, 29 June that the state government is preparing to amend existing moneylending legislation with far stricter punitive provisions, as illegal and informal lending to farmers has surged by ₹400 crore since 2022. The disclosure came during Question Hour, triggered by a query from member Sulabha Khodke on moneylending loans in Amravati district.

The Scale of the Problem

Minister Patil placed the numbers before the House: since 2022, moneylenders in Maharashtra have disbursed loans worth ₹400 crore, while the formal banking sector distributed ₹12,415 crore over the same period. Patil argued that the data refutes claims that banks are denying credit to farmers — though opposition members countered that access to formal credit remains uneven on the ground.

The state has received 343 complaints of illegal moneylending so far. Fact-finding probes found substance in 266 of those cases; illegal lending was definitively established in 34 cases. First Information Reports (FIRs) have been filed in all 34, with 48 accused booked, according to Patil.

Opposition Raises Alarm in the House

Several members — including Congress Legislative Party leader Vijay Wadettiwar, Nana Patole, Kailas Patil, Harish Pimple, and Hemant Ogale — joined the debate with pointed concerns. Pimple highlighted that illegal loans are routinely disbursed on plain paper slips and demanded a dedicated helpline for complaints. Patole alleged that district grievance redressal committees have grown inactive, allowing illegal lending to flourish unchecked.

Wadettiwar raised the high-profile Roshan Kule case from Chandrapur district — a scandal that reportedly exposed a nexus between high-interest illegal moneylending and an international organ-trafficking racket. He questioned why moneylender Diwakar Nikure, accused of usurping farmers' lands and bouncing around 130 cheques, remains at large. Minister Patil assured the House that a thorough investigation into the Roshan Kule case would be conducted and appropriate action taken.

What the Government Has Done

Of 54 complaints filed under the Maharashtra Moneylending Regulation Act with the Office of the District Deputy Registrar (DDR) of Co-operative Societies in Amravati, 44 cases have already been resolved, Patil said. A three-member district-level administrative committee has been appointed to curb illegal usury, and a District Coordination Committee — chaired by the respective District Collector — is actively monitoring crop loan approvals and disbursements.

Farmers facing defaults with District Central Co-operative Banks (DCCBs) are being offered crop loans through nationalised and other eligible commercial banks as an alternate arrangement, the Minister added.

Tougher Law on the Horizon

Patil confirmed that the state government will introduce amendments to existing moneylending laws providing for harsher punishments than current legislation allows. He said the government has accorded top priority to protecting farmers' credit access while cracking down on unlicensed lenders. The proposed amendments are in preparation, though no specific timeline for tabling the bill was announced in the Assembly.

With farmer distress and informal debt continuing to shadow Maharashtra's agrarian belt, the legislative push — if enacted swiftly — will be closely watched by both rural advocacy groups and the opposition.