To curb the rising incidence of extortion in industrial areas, the Maharashtra Government will consider formulating a new law, said Mr R.R. Patil, Home Minister, on Monday.

Mr Patil made the announcement while participating in a discussion in the Legislative Assembly on increasing lawlessness in industrial areas around Pune.

An independent MLA, Mr Vilas Lande, said that industrial areas of Talegaon, Chakan and Ranjangaon near Pune, which are run by the Maharashtra Industrial Development Corporation, are in the grip of local organised gangs. They regularly threaten companies and extort money, he said.

Accepting that there is a law and order problem in the three Corporation areas, Mr Patil said that companies were facing problems due to tussle between rival contractors, who are part of criminal gangs. “There are intense fights between the gangs over winning contracts, especially for buying scrap material from the companies.”

To curb this menace, a CID investigation led by an officer of the inspector-general rank would be soon initiated. Senior police inspectors, who are in charge of local police stations, will also be investigated. The Labour Department will also carry out an independent investigation for alleged violation of labour laws by the companies, Mr Patil said. He said that local industries are also to be blamed as they take help of such contractors.

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