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The city police have formed special teams to keep tab on moneylenders who intimidate borrowers for loan repayments, writes

Cracking the whip on moneylenders

Many businessmen who are badly in need of funds often knock the doors of "unscrupulous" private financiers as they give loans immediately.

While sanctioning loans, these moneylenders take documents such as blank cheques, promissory notes and stamp papers duly signed from the borrowers.

Even if the borrowers repay the entire money including the interest, these moneylenders used to fleece them in the name of difference in interest rate or penalty for delayed payment. They will not return the documents and will use them against the borrowers to pay more.

The financiers used to fill up the blank cheques with huge amounts and send it for realisation. When the cheques bounce, they will take the victims to the court. They will also employ henchmen to pressurise the borrowers.

According to the police, they even visit the houses of borrowers or make threatening phone calls at odd hours, just to threaten and fleece the borrowers to the maximum extent possible.

These financiers never maintain any records or keep agreements on the rate of interest agreed by both the parties.

In one such incident, following a complaint from Chinnasamy of Coimbatore that the Pollachi-based financier from whom he borrowed money threatened him even after paying the loan amount with interest, City Police Commissioner Karan Singha constituted special teams under the supervision of Deputy Commissioner of Police (Crime), Vidya Kulkarni.

The teams led by Assistant Commissioner of Police (Crime-Central) R. Sundarrajan raided the firm's offices and seized several documents.

Besides arresting a promoter of the firm, a manhunt was launched for two more promoters.

The teams also raided another firm in Ramanathapuram and arrested one person.

Mr. Karan Singha said that the teams were keeping tab on more than a dozen moneylenders from Thanjavur, Tiruchirapalli, Kumbakonam and Karur, who visit Coimbatore for potential borrowers. These financiers had no office and operated only through cellular phones, the Commissioner said.

V.S. Palaniappan

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