Non returning of cheque after loan closed

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 post filing an FIR/complaint at the local police station asking the lender to return the cheques failing which the matter shall brought 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.