One person got himself acquinted with me...and regularly took handloans of 5000/7000/9000 like wise and returned as promised...while returning he added 500/700/900 saying that its the loss i am compensating...if the money was in your bank...your interest loss. After gaining my confidence... he started saying that you lend around 3 or 4 lakhs... i will manage a daily thandal scheme...and will pay daily EMI for 100days...meaning if i lend 90000...he will manage the thandal and will pay 1000 every day for 100days. After a while (7 or 8 months) after my cash fliw reached a substantial amount like 3.5 to 4.0 lakhs...he started playing...delayed the daily payment and now...as and when he feels like... he will pay 2000 or 2500 or 4000 ir 1900 like that ...now the total outstanding with him is around 2.3 lakhs...i have all records of his bank remittances...my question is a) is this daily thandal lending legal in TN b) the absence of any formal agreement in stamp paper..will i face a legal problem. c) he always irritates me orally or by msg in WhatsApp...when i retaliate...now he says thandal is illegal and he will issue me a legal notice...or make a police complaint Kindly Guide me
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Tell him to go to the authorities. If he does then tell your story and lodge an fir against him.
Even if he does not then you should go ahead and lodge an fir. This is not commercial lending as you gave loan to a single borrower again and again.
Regards
You do not have money lending licence
2) you have been giving money on interest without any licence
3) you don’t have any agreement for lending him money with interest
4) you would not get any reliefs if you file suit to recover your dues
1. No
2. yes, you might face
3. see you can send him a notice for the recovery.
regards
Illegal but why you accepting that, just say you only lend him without interest.
You have proof of money given, no legal complications.
He is doing illegal act and not. You only demand principal amount and not interest.
Dear Sir,
If only these two conditions are needed then yes, its legal to lend. I lend my money to bank, at an interest rate.
To a person, yes i can lend it to my sister, my mother, my grandchildrens whomsoever i may want.
I can even lend to corporates.
But there is a clause, such lending should not be your business! One or two lending in a year and over years they have become 20-30 lendings its fine, but you should not do them in too much frequencies and should not lend on to unknown or through brokers. Otherwise you could be in deep trouble.
Section 3(1) of Tamil Nadu Money-Lenders Act, 1957, no person can carry on business of money- lender without holding license.
better file a recover of money suit on principal amount.
Daily tandal scheme is not legal if you don't have licence to lend the money as a licenced creditor.
Yes you will face problem in recovery of money because you don't have any agreement or cheques with you by which you can claim the money.
1. It is illegal and punishable under the provisions of law relating to extortion of exorbitant interest act, hence any legal action taken by you may land you in trouble if you proceed in this angle.
2. There is no reason to demand money from him in the manner you have narrated your story, hence on the basis of the evidence available with you for giving money to him you may send a legal demand notice to him demanding the money given to him after which you may file a money recovery suit.
3. He may give a complaint against you and in such a situation you may face problem from police, hence do not commit anything in writing to avoid getting trapped.
a) No, this is illegal in Tamil Nadu , and in all parts of India, because only a license holder for lending money on interest can do such type of work as per law.
b) Yes, you will face legal problem , in the absence of an agreement , whether on stamp paper or unstamped paper.
c) Legally you cannot recover amount from him, but you can lodge a complaint against him for the payment of loan amount ,after mentioning that you have given him friendly loan.
- Better to send a legal demand notice to him for the recovery of the due amount , and dont mentioned regarding daily thandal business.
- This demand notice will safe you , in the event of his legal actions against you, if any filed by him.
1. No
2. If he files you can file cross complaint
