2 days ago
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The Villupuram district police have booked a case against the recovery agent of a lending agency under the provisions of the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025. This is the first time the State police have invoked the provisions of the Act after it came into force on June 9, 2025.
According to the police, the complainant had purchased an earth mover five years ago with a loan from a lending agency functioning at T.V. Nallur. He had not paid the monthly instalments for the last two-and-a-half years.
The manager of the recovery agency along with his colleagues visited the complainant’s house on February 13 and demanded repayment of the overdue loan instalments. The agency also tried to seize the vehicle without following legal procedures.
Following this, the complainant went into a nearby shed, poured petrol and set himself on fire. The fire was put out, and he was rushed to a hospital with burn injuries.
Based on the incident, the T.V. Nallur police arrested the manager of the recovery agency on February 14. A case was booked against him under relevant sections of the Bharatiya Nyaya Sanhita and under sections 20 and 21 (ii) of the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025. He was produced before a local court and remanded to judicial custody.
The Tamil Nadu police have advised all money lending entities to strictly adhere to due process of law while undertaking loan recovery proceedings. The public are also requested to approach the police and lodge complaints in the event of any coercive or unlawful recovery practices by lenders.
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