1 Answer
Dear client,
Firstly, 10% per month is extremely high and may be treated as excessive/usurious under the Usurious Loans Act, 1918 and state money‑lending laws. If the lender is acting as an unlicensed money-lender, that may also be a criminal offence under the relevant State Money‑Lenders Act. Because you have already repaid ₹30 lakhs total (₹13 lakhs principal + ₹17 lakhs interest) on an initial loan of ₹24 lakhs, you have legally satisfied the principal amount along with any statutory interest allowable under the Usurious Loans Act, 1918.
Secondly, if the lender or his associates visit your home, create a public nuisance, or make threats citing political connections, record audio or video evidence immediately. File a formal written complaint with your local police station for extortion, criminal trespass, and criminal intimidation under Sections 308, 329, and 351 of the Bharatiya Nyaya Sanhita, 2023 (BNS), alongside provisions of your state's Money Lenders Regulation Act. Local police treat unlicensed, high-interest loan sharking and coercive recovery as severe offenses.
Thirdly, have an advocate issue a formal Legal Notice to the lender detailing every transaction and bank transfer. The notice must explicitly state that the loan is fully satisfied under law, challenge the illegal interest rate, demand a written No Dues Certificate and warn that any further harassment, home visits, or threats will lead to direct criminal prosecution and a civil suit for damages.
Lastly, do not hand over blank cheques, sign blank stamp papers, or execute any property deeds under pressure. If you previously provided blank cheques or signed promissory notes when taking the loan, explicitly demand their return in your legal notice and instruct your bank to issue a Stop Payment order on those cheque numbers to prevent misuse.
I hope this answer helps, if you have any other query kindly do not hesitate to contact us. Thank you.