Chennai, February 18 Police have registered the first case under the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025, after a borrower in the Villupuram district attempted suicide following alleged harassment by recovery agents, officials said on Wednesday.
The case was registered on February 13 at the T V Nallur police station, and the manager of a recovery agency has been arrested and remanded to judicial custody in connection with the incident, police said.
According to a press note from the Office of the Director General of Police, the complainant had purchased a JCB vehicle five years ago with a loan, but had defaulted on monthly installments for the past two and a half years.
It is alleged that on February 13, the agency manager and his colleagues visited the victim's house and attempted to seize the vehicle without following proper legal procedures.
Following the encounter, the victim allegedly poured petrol on himself and set himself on fire in a nearby shed. He was subsequently rescued and taken to a hospital with burn injuries.
The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025, came into force on June 9, 2025, to protect vulnerable groups, including farmers and women's self-help groups, from coercive recovery methods. Section 20 of the Act states that no borrower or their family members shall be subjected to coercive action by a lending entity or its agents.
Police said strict instructions have been given to money lending entities to adhere to the due process of law during loan recovery. Members of the public have also been requested to approach the police to lodge complaints if they face any unlawful or coercive recovery practices.