The Villupuram district police have initiated proceedings against the loan agency’s enforcement agent under the provisions of the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025. This is the first time that the state police has invoked the provisions of the Act after it came into force on 9 June 2025.
According to the police, the complainant bought the earthmoving machine five years ago with a loan from a loan agency operating in TV Nallur. For the past two and a half years, he has not paid the monthly installments.
The manager of the enforcement agency visited the complainant’s house with his colleagues on February 13 and demanded payment of the outstanding loan installments. The agency also attempted to impound the vehicle without following legal procedures.
The complainant then went into a nearby shed, doused himself in petrol and set himself on fire. The fire was extinguished and he was taken to hospital with burns.
Based on the incident, the TV Nallur police arrested the manager of the enforcement agency on February 14. A case was registered against him under the relevant sections of the Bharatiya Nyaya Sanhita and under sections 20 and 21 (ii) of the Tamil Nadu Money Lending (Prevention of Coercive Actions) Act, 2025. He was produced before a local court.
The Tamil Nadu Police has advised all money lending entities to strictly follow due process of law while recovering loans. The public is also asked to contact the police and file complaints in the event of any coercive or illegal collection practices by creditors.
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Published – 18 Feb 2026 20:57 IST