Chhatrapati Sambhajinagar: Representatives of banks and non-banking financial companies (NBFCs) have demanded police protection for their staff and offices, while urging Maharashtra govt to clarify that the drought-linked restrictions on loan recovery do not apply to salaried borrowers and businessmen. The move comes in the wake of vandalism at the offices of two finance firms in Nanded district ’s Loha taluka.
Tensions escalated on Nov 1 when activists of the Rayat Krantikari Shetkari Sanghatana allegedly vandalised the offices of two major finance firms in Loha town, about 270km from Mumbai, accusing lenders of coercive recovery despite drought conditions. He urged the state to issue a separate govt resolution (GR) making it clear that non-farm borrowers were not exempt from repayment obligations and assuring police protection for finance sector employees. Another industry representative, Vilas Rathod, warned that a complete halt in recoveries could have wider repercussions. Police have registered an offence against four persons in connection with the incident.