Threat from money lenders given loan at 8% pm
5 years ago
My brother had taken loan from his friend. Being unable to pay now due to very high rate of interest of 8% per month, the money lender is harrasing. Also he has some of my brother's signed cheques which he is depositing and those are getting bounced.
The money lender is unauthorized and does not have any license. We had also settled the matter by giving him half amount and he had agreed at that time. But now again he has started harrasing. What can be done?
A.How your brother took loan from a person who was unathourised and did not have any license ?
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VIMAL K MISHRA
Responded 5 years ago
A.License is not required for loan but it is important to be 96% of interest per annum. You should seek the help of a legal practitioner.
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A.You cannot get any advantage by that person not having lending licence, as personal lending is not illegal. Are your cheques still with that lender ?
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Ashish K Dongre
Responded 5 years ago
A.lodge a police complaint against him.
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Deepak Yashwantrao Bade
Responded 5 years ago
A.Taking loan from friends is handloan.there is no need of licence in concern of money lending from friend. weather your brother furnish any promissory note of money lending? If yes then your brother should be pay all lending money as per interest rate. If no and your brother already paid some portion of amounts or all amount then he should be issue legal notice for clarification and confirmation.Monetary matters are subject to turning into criminal matter. Better way to issue legal notice through lawyer
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ROBERT D ROZARIO
Responded 5 years ago
A.Lodge a complaint with a local police station against him section 506 IPC & penal provision under Money Lending Act of your State. Carrying on the business of money lending without the money lending license is illegal and forbidden under the law and attract penal provision under the Act and further no money lender can charge rate of interest above 18%-21% per annum. If there is a agreement such agreement is void and invalid and not enforceable before the court of law.
As per Maharashtra Money-Lending (Regulation) Act 2014:
Section 39: Whoever carries on the business of money-lending without obtaining a valid licence, shall, on conviction, be punished with imprisonment of either description for a term which may extend to five years or with fine which may extend to fifty thousand rupees or with both.
Section 43: Whoever charges or recovers interest in contravention of section 31, shall, on conviction, be punished with fine which may extend to twenty five thousand rupees, if it is first offence and with fine up to fifty thousand rupees, for the second or subsequent offence.
Indian Contract Act
Sec.23 – Void agreement – Agreement forbidden by law – Statute providing penalty for a matter or thing – Such a matter or thing – Is forbidden by law – Prohibition is implicit in penalty – Agreement offending Statute/public policy/forbidden by law – Is void from nativity – Neither party can enforce said agreement.
As per Maharashtra Money-Lending (Regulation) Act 2014:
Section 39: Whoever carries on the business of money-lending without obtaining a valid licence, shall, on conviction, be punished with imprisonment of either description for a term which may extend to five years or with fine which may extend to fifty thousand rupees or with both.
Section 43: Whoever charges or recovers interest in contravention of section 31, shall, on conviction, be punished with fine which may extend to twenty five thousand rupees, if it is first offence and with fine up to fifty thousand rupees, for the second or subsequent offence.
Indian Contract Act
Sec.23 – Void agreement – Agreement forbidden by law – Statute providing penalty for a matter or thing – Such a matter or thing – Is forbidden by law – Prohibition is implicit in penalty – Agreement offending Statute/public policy/forbidden by law – Is void from nativity – Neither party can enforce said agreement.
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A.Dear Sir,
You can lodge complaint with police and also file private complaint if police do not issue FIR. Get issue legal notice to get return the blank cheques issued by your brother.
You can lodge complaint with police and also file private complaint if police do not issue FIR. Get issue legal notice to get return the blank cheques issued by your brother.
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A.You can proceed with criminal remedy further you should take proper counter of cheque bounce matters so that same could not go against you.
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