Need Advice if legal rout is better or not

[User_8b6c841c]

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User_8b6c841c
PARTICIPANT
February 26, 2025 at 10:50 am

Hi , my brother took money from a guy who lends money. He took 5-6 lakhs on 50k(10%) per month interest a year, the interest rate is way too high. Now all that money is gone because business did not work. I came to know about it just a week ago. Now he has no money to pay interest. He wants me to help him.

I think interest rate charged here is too high. And he has paid 50k per month for a year already. I do not want to pay this much , banks charge way less. What are my legal options? Can I go to police for a case of “usery”?? I am capable of payment but considering he took advantage of my brother financial status and charged high interest, i want some payback.

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[Rapidbear8085]

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Rapidbear8085
PARTICIPANT
February 26, 2025 at 10:58 am

ADVOCATE HERE. Before explaining, YOU should understand that your brother probably went for this arrangement because HE MUST HAVE BEEN REFUSED BY BANKS. Nonetheless, he may consider the following: For starters, he can report lender to RBI for doing unlicensed business of lending. He can also report to police for extortion and criminal intimidation. BUT THIS DOESN’T MEAN that your brother is no longer liable. If the lender has all documents in place (which is usually not the case), lender might file a civil suit for recovery. If your brother has given signed cheques (which is usually the case), cheque bounce case coming at him. There are plenty more but too much to type. My best wishes.

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[User_466e2c4e]

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User_466e2c4e
PARTICIPANT
February 26, 2025 at 1:00 pm

What if his brother has not provided any legal document, just a stamp paper that says he has taken that amount, and no interest rate is disclosed there? What are the possibilities and liabilities that remain for him?

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[Rapidbear8085]

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Rapidbear8085
PARTICIPANT
February 26, 2025 at 1:46 pm

I can happily ask you further questions like the mode of repayment, time of repayment, penalty on non-payment, etc. Let’s not exhaust the talent pool that is available on reddit. My best wishes.

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[User_466e2c4e]

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User_466e2c4e
PARTICIPANT
February 26, 2025 at 1:50 pm

Surely, Hopefully someone got their queries resolved.

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[Rapidbear8085]

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Rapidbear8085
PARTICIPANT
February 26, 2025 at 1:57 pm

I did, already.

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[User_8b6c841c]

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User_8b6c841c
OP
February 26, 2025 at 6:13 pm

there was no agreement, he got money in bank account and he pays via cash ,,
thanks for your help

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[Rapidbear8085]

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Rapidbear8085
PARTICIPANT
February 26, 2025 at 8:25 pm

Given that there was no agreement, it still doesn’t mean that he cannot be sued. Lenders often manage documents and forge sign for so. Moreover, receiving of money in the account is traceable, thus, he should expect 1. Bank lien upon police complaint by lender 2. Cheating case on basis of police complaint by lender. Solution? Get that money moved from the account to prevent bank lien. Cheating case is made up when big money is police is mixed up, but nothing to be worried.

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[User_8b6c841c]

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User_8b6c841c
OP
February 28, 2025 at 9:09 am

ok

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[Cleversajal8453]

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Cleversajal8453
PARTICIPANT
February 26, 2025 at 10:59 am

Each state generally has their special law to regulate moneylenders.
Was this person a registered moneylender?

Did your brother sign an agreement? Dis he hand over signed cheques?

Need a lot of clarity on facts here.

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[User_8b6c841c]

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User_8b6c841c
OP
February 26, 2025 at 6:11 pm

no he is not registered, case is of UP, money was transferred in bank account directly , there was no agreement.

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