Tamil Nadu’s New Bill Tackles Economic Crimes and Protects Borrowers

Chennai, Tamil Nadu is taking tough steps to handle economic crimes and the disposal of bio-medical waste. The state government is planning to use the strict Goondas Act, which allows detention for up to one year, to deal with these issues. Recently, a Bill was introduced in the State Assembly to make changes to the Goondas Act so that it can address economic offences and violations related to bio-medical waste.

In addition, a new Bill called the Tamil Nadu Money Lending Entities Bill, 2025 aims to protect borrowers from aggressive loan recovery tactics by money lenders, including those operating online. The Bill clearly defines what actions are considered abusive, such as threatening the borrower or using violence. There are serious penalties for these actions, which can include jail time of three to five years and fines of up to five lakh rupees.

Importantly, if a borrower or their family member takes their own life after being pressured by a money lender, the lender can be deemed responsible for that action.

This Bill includes rules for money lenders to follow, ensuring they operate transparently and fairly. The government believes it is crucial to protect vulnerable groups, like farmers and workers, who often fall victim to high-interest loans from moneylenders and online platforms. The goal is to stop unethical actions that cause serious harm to families and communities.

Recently, the Madurai Bench of the Madras High Court recommended using the Goondas Act against those who improperly dispose of bio-medical waste. This waste can harm public health and the environment, especially given complaints about improper dumping in Tamil Nadu.

The Goondas Act, officially known for managing dangerous activities, is set to be updated to include these new measures. All these new Bills are expected to be passed by April 29, 2025.