Cases by unlicensed money lenders? ‘Nip them in the bud,’ Supreme Court tells courts
Indian Express·2h ago·Neutral
What Happened
The Supreme Court directed courts nationwide to stop proceedings initiated by unlicensed private money lenders without waiting for new state legislation. Courts must reject cases unless lenders prove licensing compliance or that money wasn't advanced at interest. The directive applies to civil and criminal proceedings. Existing state money-lending laws already contain deterrents against illegal lending. The ruling is expected to reduce coercive litigation and provide relief to borrowers facing harassment from informal lenders.
Key Entities
Supreme Court of IndiaJustice Pankaj MithalJustice Vipul M PancholiUnlicensed money lendersTrial courtsState governments