Tamil Nadu Police registered the first case under the 2025 anti-coercion lending act. A man in Viluppuram attempted self-immolation after alleged harassment by a recovery agency over a defaulted loan, leading to the agency manager's arrest.
Tamil Nadu Police on Wednesday registered the first case under the Tamil Nadu Money lending entities (prevention of coercive actions) act, which came into force on June 9, 2025. In its statement, Tamil Nadu Police said that this law was passed by the state government to protect poor and vulnerable people, especially farmers, women, and women's self-help groups, from harassment or coercive recovery methods used by money-lending entities.
Details of the Viluppuram Case
Discussing their first case, the Tamil Nadu Police stated that the matter was registered on February 13 in the Viluppuram District. The victim, a resident of the district, had purchased a JCB vehicle five years ago through a loan from a lending agency in TV Nallur but had reportedly defaulted on monthly installments for the past two and a half years.
It is alleged that on February 13, 2026, the manager of a recovery agency and his colleagues arrived at the victim's residence to demand the overdue payments and attempted to seize the vehicle without following proper legal procedures. In the wake of the confrontation, the victim retreated to a nearby shed, poured petrol on himself, and set himself ablaze. Although the fire was extinguished and he was rushed to the hospital with burn injuries, the incident has triggered a formal investigation into the agency's conduct.
Charges Filed and Arrest Made
Taking cognisance of the incident, a case was registered under relevant sections of the Bharatiya Nyaya Sanhita (BNS) and under Sections 20 and 21(ii) of the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025. Later, the accused, who is the manager of the Recovery Agency, was arrested on February 14 and was remanded to judicial custody. Further investigation is in progress.
Police Warning to Lending Entities
The statement further issued a stern advisory to all money-lending entities, directing them to strictly adhere to the due process of law while undertaking loan recovery proceedings. (ANI)
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