Kendrapara, Nov. 17: A spate of suicides by debt-ridden farmers has forced the police to launch a crackdown on unauthorised moneylenders here.

Police today arrested two people, Sanjeev Kar, 44, and Mahendra Bal, 48, for lending money to people without possessing valid licences and for allegedly charging exorbitant rate of interests.

The duo were arrested from Pattamundai and Aul for violating the laws governing money lending.

The police recovered promissory notes and blank cheques containing the signature of people who had borrowed money from them. The duo also collected gold ornaments and other valuables as security against the money lent, police sources said.

"The moneylenders were arrested as they did not have valid licence to do such work. The duo have been booked under Section 19 (clause 1 and a) of The Orissa Money Lenders Act, 1939," said sub-divisional police officer Kedarnath Sahu.

The arrested duo mostly catered to petty traders, vegetable vendors, petty shop owners and autorickshaw drivers by extending hand-written loans at 36-60 per cent interest per annum.

The drive against unauthorised money lending is being further intensified with the police already identifying over two-dozen moneylenders, the police said. Two farmers from the coastal district have allegedly committed suicide. Both of them had allegedly taken loans from moneylenders at high rates of interest.