One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X approached me regarding serious threats from a property dealer in Area A who had lent his father ₹2.62 lakh. The dealer was demanding 12% monthly interest (144% annually) which is clearly usurious and illegal. When Mr.X’s family couldn’t pay this exorbitant amount, the dealer began making threatening calls, saying he would “forcefully sell their assets” and “do something bad” if payment wasn’t made within 10 days. No formal documentation or post-dated cheques were involved in this transaction. The dealer was operating from a local shop and using intimidation tactics typical of illegal money lending operations. This case involved both criminal intimidation and violation of usury laws, requiring immediate police intervention and legal action.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

• Document all threats immediately through call recordings, WhatsApp screenshots, or witness statements
• File FIR immediately for criminal intimidation and extortion before situation escalates
• Approach consumer court if dealing with registered money lender charging illegal interest rates
• Seek police protection if threats become more serious or physical violence is imminent

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), several sections apply to such cases. Section 351 deals with criminal intimidation where threats are made to cause injury to person, reputation or property. Section 308 covers extortion where property is obtained through threats. Section 3 addresses common intention when multiple persons are involved in the illegal lending operation. Under BNSS, Section 173 provides for immediate police investigation while Section 41 allows for arrest without warrant in cognizable offenses like extortion and criminal intimidation.

If You Are the Complainant

• File FIR immediately at the nearest police station without delay, mentioning all threats made
• Gather all evidence including call recordings, messages, transaction records, and witness statements
• Calculate the actual interest demanded and compare with legal lending rates to show usury
• Request police protection if you feel threatened or unsafe in your locality
• Consider approaching higher police officials if local station doesn’t take action promptly

If You Are the Victim

• Never negotiate alone with the accused – always have witnesses or legal representation present
• Don’t make any payments under duress as it may be considered as admission of debt
• Keep detailed records of all interactions, threats, and demands made by the accused
• Inform trusted family members and neighbors about the situation for safety and witness purposes
• Consider temporary relocation if threats escalate to ensure personal safety until legal action resolves

How the Police Behave in Such Cases

Police typically take criminal intimidation and extortion cases seriously, especially when clear threats are documented. They will first register FIR under relevant BNS sections, then summon the accused for questioning. Investigation includes verifying the lending transaction, recording victim’s statement, and collecting evidence of threats. However, they may initially try to mediate if they consider it a civil dispute, so emphasis on criminal intimidation aspect is crucial.

FAQs People Normally Have

Is 12% monthly interest legal? No, this rate is clearly usurious and violates legal lending norms. Can I be forced to pay illegal interest? No, courts can reduce interest to reasonable rates even if initially agreed upon. What if no written agreement exists? Oral agreements are valid but burden of proof lies on the lender to show legitimate transaction. Should I pay to avoid trouble? Never pay under duress as it legitimizes the illegal demand and encourages further extortion.

What Evidence Is Required?

• Audio/video recordings of threatening calls or conversations
• WhatsApp messages, SMS, or written threats received
• Transaction records showing original loan amount and payment history
• Witness statements from people who heard threats or know about the transaction
• Bank statements showing money transfer details
• Any documents or receipts related to the loan transaction
• Medical records if physical harassment caused health issues

How Long Will the Investigation Take?

Criminal intimidation cases usually take 3-6 months for investigation completion. Police investigation typically concludes within 60-90 days if evidence is clear and cooperation is good. Court proceedings may extend 6-12 months depending on case complexity and court schedule. However, interim relief like protection orders can be obtained much faster, within days of filing complaint.

Advocate Sudhir Rao, Supreme Court of India