Chennai, Sep 11 (SocialNews.XYZ) The Coimbatore police have commenced crackdown on money-lenders, for lending money at exorbitant rates and threatening customers who are unable to pay the principal amount and the interest rates.
The police action began on Friday when a money-lender Sathish Kumar was arrested. Police said that he had lent Rs 5 lakh at 4 per cent interest to one Manickam three months ago.
Manickam repaid Rs 2.5 lakh along with the interest. However, Kumar asked Manickam to pay 7 per cent interest per month for the balance amount which was flatly refused by Manickam.
Kumar threatened Manickam with dire consequences if did not oblige to him. The Thudiyalur police arrested Sathish Kumar and remanded him to judicial custody.
He was booked under Sections 3, read with Section 4 of the Tamil Nadu Prohibition of charging Exorbitant Interest Act and Section 506(ii) (criminal intimidation) Act.
With the arrest of Sathish Kumar several usury money lenders are under police watch and Coimbatore police have decided to increase crackdowns on money-lenders.