Money borrowed at high interest rate
Ramya
(Querist) 11 May 2017
This query is : Resolved
My grandmother borrowed loans from a neighbour o for my fathers business. The lady charged 10% per month as interest. When we were not able to pay the interest due to business losses after two years the lady made her get another loan to pay the interest. This got accumulated to around 10 laks over years and we are unable to pay the interest now. She was also made to join the chit fund that this lady ran to pay off the debts. We told her we would pay the principal amount as 1 lakh at a time when we would get money. The matured amount from the chits and other money which we gave for paying off the principal she started reducing it from interest rather than the principal as accepted. Every day she is now calling my grandmother for atleast 10 times and verbally abuse her. She is demanding 30 lakhs back with the principal and the interest. Grandma is a pensioner and gets 7000 pm she is paying the interest 16000 for two loans regularly till date with our help. She always calls her up to come and meet her daily at a park or on road and shout at her. Recently the ladys husband and daughter in law are also calling up and torture her mentally. We have already paid more than twice of the principal as interest so far. She does not have any agreements drawn and signed for this. But we have given one cheque two years back for one lakh as security. She is threatening to come to our home with goons if we do not pay up the money immediately. Kindly advise
Ramya
(Querist) 11 May 2017
Kindly advise
Guest
(Expert) 11 May 2017
Consult A Local Good Advocate and File a Police complaint in detail mentioning about their harassment marking copy to senior police officials of your area like SP or Commissioner.If you had given any cheque issue Stop Payment Letter to Bank and take acknowledgement and issue a Strong Legal Notice to them Cheque Not to be Presented.Consult A Local Good Senior Advocate.
Kumar Doab
(Expert) 11 May 2017
Hope you have the copy of all documents that you signed with the said Lady, amounts that you paid and statements that are issued to you, acknowledgment of cheques if any that you have deposited.
You may show these to a very able local counsel at your location of unshakable repute and integrity specializing in such/consumer/civil matters, for a considered opinion.
You may record the threats, abuse, and harassment.
Rajendra K Goyal
(Expert) 11 May 2017
Show all documents and discuss in detail with local lawyer.
Sudhir Kumar, Advocate
(Expert) 11 May 2017
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.
Such loan is taken by a person:-
(i) Who lacks business sense and cannot raise funds out of his own business and suddenly wants to be rich.
(ii) who cannot raise bank loan because :-
Either
he himself is not creditworthy
Or
the purpose for which he seeks loan is illegal
or
the purpose for which he seeks loan is not at all commercially viable.
(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) Who has made fortification against action of refund.
(SO THESE FACTORS ARE FITTING INTO YOUR CASE.)
So he has to find someone who can part with his money. SO he finds a lender near him (friend or relative)
Such loans are given by the persons :-
(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debtor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.
(these factos are not fiting into your case)
Such loans are always given
(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.
(iv) During cordial relations
Soon after giving such loan :-
(a) Relations are no more remain cordial
(b) Business started by such money (easy money belonging to other) invariably fails.
(c) Such loans always sink and not refunded.
(d) Person seeking such refund suffers at legal process.
(e) Person seeking such refund legally or by persualtion is socially criticised.
Kumar Doab
(Expert) 11 May 2017
Mr. Sudhir Kumar is illustrious.
Hard realities.
Sudhir Kumar, Advocate
(Expert) 11 May 2017
Basically the bad situation has been created by your family with hard work.
Why at all should your mother take a loan @10% per month for business of a son who is not at all earning (you never said that your father's business was sufficient and legal and strong enough to pay that much rate of interest)
WHY AT ALL YOUR FATHER SHALL NOT PAY IT AND LET HIS MOTHER BY HUMILIATED.
It is not at all understood that when your grandmother is unable to pay loan "X" why at all she should borrow loan "Y" (you never said from whom second loan was taken.
How can your father claiming to be a trader, (if he really is) can forget a basic principle of commerce and economy that a loan cannot be paid by another loan. It is earning alone which can repay loan.
Then how on earth one can compel other person to commit to chit fund (understood not legal). How can your grandmother omit to understand that street chit funds are generally run by fraud loving housewives.
Sudhir Kumar, Advocate
(Expert) 11 May 2017
"She does not have any agreements drawn and signed for this. But we have given one cheque two years back for one lakh as security. "
Very good.
When that lady has no legal means to recover money you have provided her the harshest tool.
Now the one who signed the cheque can opt to sit in jail or buy cheque from her.
Sudhir Kumar, Advocate
(Expert) 11 May 2017
So better read twice what Mr Narasimha has commented above. That perhaps is the only way out.
Sri Vijayan.A
(Expert) 11 May 2017
Rightly advised by Expert Sudhir Kumar.
With the help of good local lawyer file complaint with Police
Sudhir Kumar, Advocate
(Expert) 12 May 2017
be sure that while you make police complaint they may turn against you.
the stake involved in 10 Lakhs which she wants as unearned money. She may not mind a percentage of the same to be thrown to police to assist her in harassing you.
You have to be clear :-
(I) recovery of loan is not job of police
(II) action against threatening is job of police. They may do so on your true complaint or on her false complaint.
You have also to consider parallel complaints to many organization like income tax RBI etc.
Guest
(Expert) 12 May 2017
Mr.Sudhir Kumar Please Clarify what is the Role of RBI-Reserve Bank of India in this Please
Guest
(Expert) 12 May 2017
Mr.Sudhir Kumar Also Could you Please Justify the Role of Income tax Dept in this Issue Please
Kumar Doab
(Expert) 12 May 2017
Good to see expression of agreement with experts.
Guest
(Expert) 13 May 2017
Appreciation is always Welcome
Kumar Doab
(Expert) 13 May 2017
Good to see expression of appreciation for experts.
Guest
(Expert) 14 May 2017
Appreciation is always Welcome
