Supreme Court to Help Borrowers Against Unfair Lenders
New Delhi, India – The Supreme Court of India has decided to look into the issue of lenders who act unfairly towards borrowers. A bench of Justices CT Ravikumar and Sanjay Karol expressed concern over cases where people take loans and end up in severe debt, sometimes even leading to homelessness or suicide.
The court mentioned that some lenders give large loans and charge very high interest rates, making it hard for borrowers to repay. These lenders avoid money lending laws by giving loans intermittently. In one case, a lender claimed to have given Rs. 85 lakhs as friendly loans.
This issue came up during a cheque bounce case involving Bollywood filmmaker Raj Kumar Santoshi. The court noted that lending money without a license and securing it with cheques or property deeds is like running a money lending business.
The court has involved the Union of India and the NCT of Delhi in this matter and has scheduled the next hearing for August 23. The court also pointed out that large loans might involve tax evasion and that current laws do not cover all types of money lending activities.
Doubts Revealed
Supreme Court -: The Supreme Court is the highest court in India. It makes important decisions that affect the whole country.
borrowers -: Borrowers are people who take money from others, usually banks, with a promise to pay it back later.
unfair lending practices -: Unfair lending practices are when lenders, like banks, treat borrowers badly, making it hard for them to repay loans.
Justices CT Ravikumar and Sanjay Karol -: Justices CT Ravikumar and Sanjay Karol are judges in the Supreme Court who are looking into the unfair lending practices.
Union of India -: The Union of India refers to the central government of India, which makes laws and decisions for the whole country.
NCT of Delhi -: NCT of Delhi stands for National Capital Territory of Delhi, which is the area around India’s capital, New Delhi.
cheque bounce case -: A cheque bounce case happens when someone writes a cheque, but there isn’t enough money in their bank account to cover it.
Raj Kumar Santoshi -: Raj Kumar Santoshi is a famous filmmaker in India who was involved in the cheque bounce case that brought attention to unfair lending practices.
