Harassment from Khan

Dear Client,
In India, moneylenders are governed by the Moneylenders Act, 1957, in different states. Any individual/organization engaged in a money lending business must hold a license from the appropriate authority, such as the RBI or the State Legislature. A money lending license is usually granted by the Revenue Department of the respective state government in compliance with the provisions of the Money Lenders Act and the state-specific rules. If any person or a group of persons is involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority, then he/they may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source, once reported to the vigilance cell. The offender can face imprisonment for not less than three years, extending up to seven years. So, in the given scenario, first ensure whether the lender is carrying out his money lending business with a valid license or not, and in the absence of a valid license, you can serve a legal notice to the lender and bring the matter to the notice of Vigilance Cell and the concerned regulatory authorities under PMLA and State Revenue Deptt who issues license for money lending business. Further, Project VIGEYE (Vigilance Eye) is a citizen-centric initiative, wherein citizens join hands with the Central Vigilance Commission in fighting corruption. Users can lodge their grievances and complaints online.

Dear Client,

As per your statement you are facing financial harassment from one person namely Khan, who has been charging you an illegal interest rate of 10% per month on a Rs. 1 lakh loan and has already recovered over Rs. 1.8 lakhs from you over 1.5 years.

His behavior insulting and torturing you at your doorstep is not only unethical but also a criminal offense under sections like 504 (intentional insult), 506 (criminal intimidation), and 441 (trespass) of the IPC. Since he deals only in cash and avoids receipts, it's crucial that you start collecting evidence such as video or audio recordings, written logs, or witness accounts.

You should file a police complaint against his harassment and also send him a legal notice through a lawyer. Additionally, consider approaching your state’s moneylending authority to report his illegal lending practices. You may also seek help from the District Legal Services Authority (DLSA) for free legal aid.