Without money lending license, it is illegal. Maximum she can claim principal amount. 

Do she have original property documents?

Tell her on message to return original document with cheques and you will return her left amount or send legal notice.

Without lending license, Cheque bounce case is not maintainable.

Maximum she can claim, 9% interest on due amount if will file recovery suit.

They may deposit your cheque and file false cheque bouncing cases against you. You need to contest the same in court once filed. They will not agree to principal amount. 

1. Seems the Woman Money Lender is doing illegal Money Lending business without a "Money Lending License", which in itself is a prosecutable offence under the Maharashtra Money Lenders Act.

2. Even if the woman has your cheques, THEN too she will not succeed in Court to recover her money, due to her illegal business.

3. There are several HC & SC court judgments to the above effect.  You can safely refuse to pay her anything and let her go to court, where she cannot win.

Hi

You can complaint about her with the police authoritiea and settle down the matter as per your convenience 

Does she have money lender licence ?only person who has money lender licence can give loan 

2) interest rate is usurious . 

3) further so much cash cannot be given as loan 

4) ask her to return blank cheque’s given as security 

5) if she files any civil suit she would not succeed if she did not have money lender licence 

6) in case she presents blank cheque and files complaint under section  138 NI on account of dishonour of cheque take the defence that there is material alteration in the cheque and details have been filed in by her 

Dear Sir/Madam,

The best thing would be to pay some amount and keep her engaged. The only issue you or your friend may face is that the cheque bounce by that woman in case of any conflict. So, get the missing report registered regarding those cheques first. Then file the complaint to economic offences wing of police regarding her money lending at very high rate of interest. She will herself face the problem and you be a witness in that case.You might be relieved of big burden. 

First stop the payment of all cheque.

Refund the balance loan amount.

Pay the interest at the normal rate prevailing in the market.

These can be done by sending her a new cheque alonng with the details of account settlement by post or courier .

She can not intitiate any legal action for interest amount in excess of the normal interest amount .

1. 120% interest p.a is exorbitant and not permissible.

2. If she has your cheques then she can fill up the cheques and present to bank for collection. You will then have to face criminal prosecution for the offence of cheque dishonour under Section 138 of NI Act under which there is a presumption that cheque in question was issued in discharge of a legally enforceable debt.

Give her the principal amount and refuse to pay the interest. She has little options left with her. 

1. since you had taken the loan at the agreed rate, therefore, liable to pay,

2. chat, call records, WhatsApp record, if relevant, can prove the contents and are admissible as evidence,

3. rate of interest (120% PA) is highly exorbitant and may not admissible,

4. cheque given by you & friend will create legal problems for both of you,

legal presumption as per the NI act is in favour of the complainant

5. try to settle the matter amicably by asking for some discount in the returned amount,

1. Well being an educated person if you fall in trap of money sharks then you should face problem so you het out of your slumber. 

2. If you have paid the principal amount then stop paying further.  I am sure you have proof of money borrower through WhatsApp chats.

3. Since she is an illegal money lender she can not recover the interest part any more. 

4. If she files cheque bouncing case then you can take a plea of full payments of money borrowed. 

5. Lodge a complaint of threats with police once she starts demanding interest. 

1. Complain at once to the jurisdictional Police Station, alongwith the concerned documents.

2. Since the lender is not a licensed moneylender, as also she is charging exhorbitant rate of interest, approaching CCB wing of the Police is the ideal solution.

1. there is an agreement between you and the lender which is recorded on calls and whatsapp

2. you have agreed to pay interest at 10% p.m.

3. after having so agreed, how can you resile?

4. anyway for recovering the balance with agreed interest the lady has to file a suit against you

5. for that she will have to pay court fees on basis of her claim and also bear lawyer's fees

6. since you do not want to pay the interest, let her file the suit

7. at the hearing of the suit you can offer to repay the balance principal and seek a waiver on interest

8. the court will consider that and may also direct a lower and reasonable interest to be paid by you to the lender

9. i do not understand how you sold the property which was given as security? did not the buyer demand the original title document ? 

First you paid the principal amount. And Negotiate with her with good words and try to settle the matter amicably.If it does not work out then file a complaint against her about her threat and demanding exorbitant interest. The same time indicate the details of cheque No. and details in your complaint which already handed over to her as a security for the loan . Express your fear about the misuse of blank cheque leaf in her hand. When she file a 138 case , this complaint can use as an evidence .

1. You should send her a legal notice through your advocate.

2. In legal notice mention that you are ready to pay complete principal amount to her because interest is clear till date and you are refusing to take the amount and returing property documents and cheques available with her. 

3. Tell her that she can take principal as and when ready and from this date onwards you will not be liable to pay her interst as she refuse to take principal amount and demanding inappropriate amount which cannot be paid to her. 

4. She cannot use cheque or documents available with her and if she uses these documents she will be liable for criminal proceedings against her. 

- Money lending without a Money lending licence is an offence , and the person doing this without having a licence can go behind the Bar , and fine upto Rs. 30,000/- .

- Further, the Money Lending Act prohibits from charging interest rate more than 21% for unsecured loans for non-agriculture people and 18% p.a.for secured loans for non-agriculture people, The loan rate as per Money lending is simple interest per year.

- Maximum a money lender can charge 2 percent more than the commercial bank rate of interest , and nothing more

-  The Supreme Court of India has instructed the government to impose onerous conditions to restrict or even discourage people from entering into money lending business.

- You should lodge a written complaint to the police after mentioning that that she is engaged into the business without having an licence , and charging huge interest from the innocent persons like you , and further threatening for filing a case on the security given cheques.  

- Further make stop payment of the given cheques to him , after submitting the complaint copy to the bank.

- If, no response , then file a case before the court for declaring the given cheques as without consideration .

- Keep with you all the earlier payment proof  for future purpose. 

- Further , you have borrowed the amount from her after giving her the property papers of your mom , it means your mother was not responsible for the payment of the loan amount .

- Since your mother has already sold that property , hence that lady cannot recover the amount on the basis of that property papers .

Good luck and dont forget to rating Positively. 

Whether you used the money or not since you have borrowed the money hence you cannot deny the fact  of loan.

However did you not know the interest was exorbitant at the time of borrowing?

If you were knowing that this was an exorbitant interest then you have knowingly taken the loan from him.

Since your mother's property has been sold by her using duplicate document, she need not be worried on that aspect.

But the lender is in possession of four blank cheques, you have to be careful about it.

You can issue a legal notice demanding the return of he blank cheques you issued for the purpose of collateral security for this loan and express your willingness to repay the entire loan amount of Rs. 6,40,000.

You can also make a mention about the exorbitant interest being charged by the lender which is an offence as per prohibition of exorbitant interest act.

In the meantime you may inform your bank to stop payment against the cheques if presented for payment.

Despite that if the lender files a cheque bounce case you can challenge the same on merits and on the basis of the documentary evidences in your support. 

Now unless supported with adequate evidence any verbal agreement is difficult to enforce, further a Professional money lender is required to have a money lending license to do business of money lending. 

Let the person lodge complaint against you in cheque bouncing case. Its very easy to file a case but very difficult to prove the same in the court of law. You hire a good advocate. There are lots of points which can not be explained now .

So for legal action is concerned she may deposit cheques and letter go for section 138 NI Act procedure which is punishable and penal.

The interest rate have no legal meaning and a case may not be filed on this ground.

You have sold the property. She has the cheques. She will try to encash them. They will bounce and then she will file a case against you. But she has to prove that she took these cheques in lieu of a loan. Therefore inform the bank that these cheques have been stolen/lost. Inform her that you cannot pay that much amount.