CHENNAI: For the first time in Tamil Nadu, a case has been registered under the newly enacted Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025, as the Viluppuram police booked recovery agent R Prakash on Friday.
According to the police, the case was registered at TV Nallur police station in Viluppuram following a complaint from M Suresh, who had availed a loan about five years ago to purchase an earthmover for his livelihood. Police said he had defaulted on monthly installments for more than two-and-a-half years due to financial difficulties.
On Friday, Prakash, manager of a lending and recovery agency functioning at TV Nallur, along with his associates, allegedly went to Suresh’s residence and demanded repayment of the overdue instalments. During the visit, the recovery team allegedly attempted to seize the vehicle without adhering to the prescribed legal procedure for repossession.
Police said that following the confrontation, Suresh went into a nearby shed, poured petrol on himself and set himself on fire. Family members and neighbours rushed to his aid and doused the flames. He sustained burn injuries and was admitted to a government hospital for treatment.
Based on the complaint, police registered a case under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) along with sections 20 and 21(ii) of the Tamil Nadu Money Lending Entities Act, which bars coercive recovery practices against borrowers and their family members.
Prakash was arrested on Saturday and remanded in judicial custody.