Chennai, Apr 26 (PTI) Economic offences and dumping of bio-medical waste is all set to be dealt in Tamil Nadu by invoking the stringent Goondas Act, that facilitates detention upto one year.

A Bill to amend the Goondas Act to bring economic offences and violations of bio-medical waste under its ambit was introduced in the State Assembly on Saturday.

Also, the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions), Bill, 2025 was introduced in the House to prevent coercive means of loan recovery by money lenders including digital lending platforms. The Bill defines coercive action.

Intimidating the borrower or any of his family members, obstructing or using violence, interfering with any property owned or used by the borrower are part of the description that shall constitute an offence.

Using the service of private or outsourced or external agencies to negotiate or urging the borrower to make payment using coercive methods or by way of exerting undue influence are offences.

Punishments for specified offences include imprisonment upto three years and it may also further extend to five years or fine upto five lakh, or both.

Section 22 of the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions), Bill says: "If a borrower or any of his family members commits suicide and if it is proved that immediately prior to such suicide, the borrower or any of his family member was subjected to coercive action by the money lending entity which advanced the loan or its agents, such money lending entity and its agents shall be deemed to have abetted such suicide and deemed to have committed an offence under section 108 of the BNS, 2023." This Bill has provisions related to registration, regulations for transparency, dispute resolution and so on.

The Statement of Objects and Reasons (SoOR) of this Bill said: "Tamil Nadu is a pioneer state in protecting people from usurious interest on loans, by regulating the business of money-lenders and pawnbrokers." Further, it said that recently, economically weaker and vulnerable sections of the society especially farmers, women SHGs, agricultural labourers, workmen, footpath vendors, dairy workers, construction workers, migrant workers "often fall prey to the attractive loans offered by money lending entities including digital lending platforms." They resort to unethical ways of recovering debt from borrowers who are already in financial distress, which sometimes instigates the suffering borrowers to commit suicide, thereby ruining many families which disturbs social order.

"Therefore, it is considered necessary to provide a statutory framework to protect the economically weaker and vulnerable groups from undue hardships of coercive means of recovery by the money lending entities engaged in the business of providing loan to an individual or group of individuals or SHGs or Joint Liability Groups. Accordingly, the government have decided to enact a legislation to protect the people from the coercive actions of the money lending entities." The SoOR of the bill to amend the Goondas Act said that Chief Minister M K Stalin had announced that persons indulging in economic offences would be detained under the Goondas Act and accordingly, that Act would be amended suitably.

The SoOR further said improper disposal of bio-medical waste poses grave risks to public health and environment. There are frequent complaints about the dumping of such wastes in Tamil Nadu from the neighbouring states. The Madurai Bench of the Madras High Court in its order of November 15, 2023 observed that it is right time to book the violators of the Bio-Medical Waste Management Rules, 2016 under the Goondas Act by making suitable amendment.

In view of the repeal of the IPC and the CrPc by the Centre and the enactment of BNS and the BNSS, certain consequential amendments are required to be made in the Goondas Act, the government said.

The full title of the Goondas Act (Tamil Nadu Act 14 of 1982) is: Tamil Nadu Prevention of Dangerous Activities of Bootleggers, Cyber law offenders, Forest-offenders, Goondas, Immoral traffic offenders, Sand-offenders, Sexual-offenders, Slum-grabbers and Video Pirates Act, 1982.

It is popularly known as Goondas Act.

All the Bills are expected to be passed on or before April 29, 2025. PTI VGN ROH

Detention under Goondas Act expanded to cover economic offences and bio medical waste dumping as an enforcement measure. Amendment to the Goondas Act would extend preventive detention to specified economic offences and improper disposal or dumping of bio medical waste, allowing detention up to one year and making consequential revisions linked to recent central criminal law changes. The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill defines coercive recovery practices-including intimidation, violence, interference with property and use of agents-as offences, prescribes custodial and monetary penalties, treats coercive conduct immediately prior to a borrower's suicide as abetment, and establishes registration, transparency and dispute resolution requirements for lending entities.