Dear All
I want to know legal position regarding “Money lenders” charging 5 to 20% interest per month.
These persons rope boys from well to do families who are out of track, fell victims of alcohol/drugs, get signed cheques and signatures on blank papers and then black mail them to extort money, these people although get blank papers signed from borrower, but do not give any receipt of interest received, if some one fails to pay, they threatened boys of telling their families, if if this does not work, they start threatening families of victims, if they cannot extort money from family, these people fill 4-5 times amount given to boy in cheques, get cheques bounced and file complaint u/s 138.
I want to know the legal remedies in such a cases and clarification on following issues:-
a) Can any person do money lending or there is Reserve bank guidelines on issue.
b) If ‘money lender fills amount, name of drawer in his handwriting instead of borrower handwriting, Can this cheques be challenged in court while degfending complaint u/s 138.
c) Can borrower or his family file criminal complaint against money lender for criminal breach of trust, cheating , extortion etc.
d) Is there any NGO helping victims of such a extortion
S.K.Kapoor
