Moneylender arrested for collecting ₹1.15 crore through usury and threats
Police in Avadi have arrested a moneylender for extorting over ₹1.15 crore from a borrower through threats, assault, and usury. The accused allegedly used signed blank documents to coerce the victim into paying exorbitant interest rates.
Why it matters
This case highlights the dangers of predatory lending practices and the legal consequences of criminal intimidation in financial disputes.
A moneylender was arrested by the Avadi Central Crime Branch (CCB) on charges of collecting exorbitant interest, criminal intimidation, and assault after allegedly extorting more than ₹1.15 crore from a borrower.
According to the police, the complainant, Natarajan of Thiruvenkadam Nagar in Ambattur, stated that he had known the accused, Kalimuthu, for nearly two decades. In 2018, Natarajan allegedly borrowed ₹16.10 lakh from Kalimuthu to meet business expenses.
The police said the accused allegedly obtained a signed blank promissory note, six signed blank cheques drawn on Bank of Baroda, and three signed blank stamp papers before disbursing the loan in instalments.
The complainant alleged that between January 19, 2019, and August 13, 2025, Kalimuthu repeatedly threatened and assaulted him, forcing him to pay a total of ₹1,15,02,800. Despite receiving the amount, the accused allegedly demanded an additional ₹90 lakh by levying exorbitant compound interest.
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