Three women booked for illegally running chit fund, lending money at exorbitant interest rates
Three women in Bengaluru have been charged by the Central Crime Branch for running an illegal chit fund and predatory money lending. The accused allegedly threatened a borrower and her family after collecting excessive interest payments.
Why it matters
It addresses the prevalence of illegal financial schemes and the legal enforcement actions taken against predatory lending practices.
The Central Crime Branch (CCB) has registered an FIR against three women for allegedly running an illegal chit fund and lending money at exorbitant interests and threatening a borrower and her family over repayment.
The accused have been identified as Susheelamma, 50, Rakshitha, 33, and Navaneetha, 26. All three are residents of Sri Veerallappaswamy Nilaya in Vinayaka Layout, Hulimangala, Bengaluru.
According to the complaint filed by Tejaswini D.S., Deputy Registrar of Chit Funds, Bengaluru Urban district, the accused allegedly lent the complainant ₹16.09 lakh without the required licence and attempted to recover excessive interest.
The complainant alleged that she had already repaid ₹38.60 lakh to the accused. Despite this, they allegedly pressured her to pay another ₹26.09 lakh, comprising the claimed principal of ₹16.09 lakh and ₹10 lakh as interest.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in