The case had served to draw concern about the scale and nature of the burgeoning chit and loan-sharking scene in Kerala, a good part of it run with scarce government control. The state with a population of over three crore has close to 50,000 registered chits in operation, with the collective turnover running into hundreds of crores. There are about 6,000 money-lending institutions while all the commercial bank branches together would total only about 4,000. Being one of India’s top consumer states, easy credit is in great demand and these operators help themselves to the vast segments that the commercial banks would balk at servicing.

Many of these outfits are run ruthlessly and turf wars and fly-by-night operations are all too common. All that is still needed to float such an outfit here and escape the government’s attention is to get the head-office registered in places like Jammu and Kashmir or Faridabad (as in the case of the Himalayan group) or Gurgaon or elsewhere up north.

Jammu is a particular favourite. Thousands of these outfits in Kerala claim their HOs to be in Jammu though government officials say many of them may not have ever seen J&K.