My senior citizen parents in Bhopal MP has lended 10 lakhs to a person via a middle man. This middle man earned confidence of my parents by helping them in some of the needs. I live abroad(USA) and my brother also live away from my parents. Only one of my sibling lives in the same city where my parents are living. Money was lended by my parents to this guy as he wanted to start a franchise business for the period of one year. My father being very nice fellow - never did any agreement. He somehow convinced my father that he will pay 20% interest rate per month. My father never received a penny from him. Later when i visited my parents - came to know about this scam. It's almost 19 months and there are no signs of interest or principal. I some how made them get into an agreement(Udhaarinama) by putting principal+interest(for 24 months) as the principal. Also got a post dated cheque from this guy which states that he will pay back within 24 months(which is 5 months from now). At the same time this guy try to sell some plot or some other stuff to my parents which i don't want to get into. This guy(who took money) is not willing to share his employment details as well as how he is going to pay it back. His post dated cheque account is active but not enough money(based on my inquiries to the bank). He started being arrogant, posing challenges and intimidating me on few occassions(every thing recorded). Finally i filed an online FIR about his behavior towards me an elderly parents. Cops intervened(as we had some relationships with the cops). Cops asked us to send an application so that in case the cheque is bounced or this person absonds so that some action can be taken. Till now we have only consulted some attorneys. We have mentioned all the cheques in the agreement and there are some transactions which are of cash value. I at least expect that principal(which is clear and documented as paid via cheques) alone be returned. As per the notary person - my parents cannot charge any interest as they are neither sahukaar or any financial organization. What's your take on this overall situation?
Hello
That man is a fraud and you should try to recover your money as quickly as possible. The pdc that he gave you...so you should go to the bank and put that cheque and if the bank rejects it citing insufficient funds then then send a statutory legal notice as mandated in the negotiable instruments act and file a case against him. Otherwise he will never return your money.
Regards
Sir first of fall your parents cannot.charge interest is.correct position as they do not have the money lending license. And it is illegal to.lend money for charging interest without license.
Secondly the best remedy here with you is put cheque in the bank it will get dishonoured follow.the procedure of cheque bounce case I.e serve notice and non recipt of amount on notice file a 138 NI complaint. Further take care of the fact that interest should not be brought before court that you lended money you can present it as friendly loan without interest you canot produce the agreement for debt.
1) issue legal notice to borrower to refund money with interest
2) if he fails to do so fine summary suit to recover dues with interest
3) not necessary to have money lending licence if it is ocassional transaction and not carrying on business of money lending
4) in case cheques ate dishonoured file complaint under section 138 NI for dishonour of cheque
There are two ways to deal with this problem either you have to wait another 5 months deposit the check in the bank and get it bounce and file a case under section 138 of Negotiable Instrument Act which is a punishable offence and attracts a fine double the amount outstanding and the principal as well in the second case you can file a case in the criminal court under section 420 and 406 for cheating and misappropriation of your money which is again a punishable offence and he has to appear in the court
Hello sir , the most effective way to recover your money is to get the cheque dishonoured and file a criminal complaint under section 138 of Negotiable instrument act ... The court can provide 2 year of imprisiomment and fine of double the amount upon the accused
You can bounce the Cheque and file criminal Complaint under Negotiable Instruments Act. You can file cheating Complaint against him but your agreement to repay with interest can turn it into civil case. You can also file recovery proceedings in civil court.
You get the cheques dishonored and issue a legal notice to him on this and demand the return of the loan amount
If there is no reply or compliance you may either lodge police complaint or initiate cheque bounce case as well as a complaint before the senior citizens welfare tribunal
As my father doesn't lend money and that is not his profession...it's a one time odd lending where interest is expected. So I don't think it's illegal. Anyway we are ready to give up the entire interest and looking only for principal after 2 years. When i reached out to this conman - he was very aggressive and taking advantage of his position(as he has our money). I had recorded the entire conversation. He was abssusive and went till extent that he will kill me. I filed the online FIR. Cops intervened and he said in front of the cops(TI) that he will pay the dues but how - that is not sure. He did mentioned that he is working in government sector but there is no proof provided. Moreover he is living in the rented house. I am some what nervous whether we will be able to even recover the principal. He took this money to start the franchise and put it into another profession(buying land and now he is having all sort of excuses not to have money). Except wait and watch and deposit the cheque after another 4 months - we have no other remedy. What you guys suggest now? My father still believes that he will get his money back and want his own kids to stay away from this matter.
1) on dishonour of cheque file summary suit under order XXXVII of code of civil procedure to recover money with interest
You were advised to file cheque bounce case against him, did you do that?
Did you take steps to file money recovery suit in civil court?
Did you consult a local lawyer on this and got his suggestions and opinion?
Simply grumbling on the helplessness will not fetch you any relief, you have to take steps and put your efforts.
Yes it is legal charging interest without a legal money lending license, Sir you have a remedy to file a summary suit prior to that but since you have the cheque it would be best in interest to wait for the cheque if it get bounced you can file a 138 proceeding thereby it will be recovered along with the damages and further he can be punished also.
Hello
You should cash the cheques he gave you and in case the cheques bounce then file an case against him.
Regards