MUMBAI, June 19 -- As the kharif season begins, the state cooperation department has decided to take strict action against illegal moneylenders, given the continuing agrarian distress and suicides by farmers. In the first week of June, the government released data showing that it had received 10,535 complaints of land grabs by unlicensed lenders and that criminal action had been taken in 513 such cases. It also pointed out that 761 hectares of farmland that had been grabbed by private moneylenders illegally were returned to the farmers. Early this month, the government issued directives to all deputy district registrars (DDRs) to take strict action against licensed moneylenders who resorted to illegal means such as inflating interest rates above those mandated by the government or demanding more mortgage than is allowed. The DDRs were also told to act firmly on complaints received against private moneylenders operating without licences. Both licensed and unlicensed moneylenders-who largely cater to farmers, especially at the beginning of the kharif or sowing season-are regulated by the Maharashtra Money Lending (Regulation) Act, 2014, which was enacted after the number of complaints of exploitation and land grabbing and, in turn, suicides by farmers went up manifold. The debt trap, because of the usurious rate of interest levied by moneylenders, is considered a major reason behind farmer suicides. Ever since the law banning unlicensed lending came into force, the Maharashtra government has registered 10,535 cases across the state in the last 10 years. The highest number of cases, at 4,932, are from Marathwada, followed by 2,128 from western Maharashtra, 2,104 from Vidarbha, 1,343 from North Maharashtra and 28 from Mumbai. "The complaints were scrutinised by the DDRs at the district level to verify the facts, as most of these cases were of acquisition of land as security towards the loans," said an official from the cooperation department. "In 1,099 cases, the inquiry found illegal appropriation of land, and the authorities ordered that 761.20 hectares be given back to the complainant farmers. From these cases, criminal cases have been registered against 513 lenders." According to agricultural experts, exploitation by moneylenders also stems from faulty government policy. "The selling price of agricultural produce is much lower than its MSP, leading to huge losses and making it difficult for farmers to recover even the input cost," said agricultural expert Vijay Jawandhia. "This results in their inability to pay off their zero-interest loans taken from banks on a government guarantee. Once they are declared defaulters, they are compelled to go to moneylenders, pushing them into the trap of multiplying interest. The government should simplify the zero-interest rate system by not declaring them defaulters the very next year after their failure to repay the loan." Farmers prefer unlicensed lenders to licensed ones for a variety of reasons. "Unlicensed lenders are easily accessible at the village level, unlike licensed ones at the tehsil and district level," said Jawandhia. "They also disburse money immediately without documents. However, the catch is that in most cases, farmers are made to sign a sale deed for their land in return for the loan." According to the law, lending without a licence is illegal. There are over 10,000 licensed moneylenders, while the number of unlicensed ones is many times that. Licensed lenders disburse over Rs.2,000 crore every year, while there are no official figures for money lent by unlicensed operators. Licensed moneylenders charge an interest rate between 9% and 12%, the rate finalised by the government. Unlicensed moneylenders charge an usurious rate of up to 60%, according to officials and agricultural experts....