Rajkot Businessman Alleges Extortion, Harassment Over High-Interest Loans; Police File Case
A 30-year-old man from Rajkot, Gujarat, has approached the Jetpur City police with a serious complaint of extortion and harassment against four individuals. The complainant, identified as Vaibhav Chauhan, who operates a colour chemical business, alleges that he was trapped in a vicious cycle of high-interest debt and faced repeated threats from the accused.
Details of the Alleged Loan Transactions and Harassment
According to the First Information Report (FIR) registered under the Gujarat Money Lenders Act, Chauhan borrowed a total of over Rs 51 lakh from the four accused over the past two years. The loans were taken at an exorbitant interest rate of 7.5% per month, which is significantly higher than legal limits. The breakdown of the loans is as follows:
- He borrowed Rs 12 lakh from Punit Barmeda about two years ago for his business needs, providing two cheques as security. Chauhan claims to have paid more than Rs 5 lakh in interest on this loan so far.
- He took Rs 30 lakh from Ravi Mevani at the same interest rate and had repaid approximately Rs 16.3 lakh.
- He borrowed Rs 6.8 lakh from Mitesh Asra, against which he had paid Rs 1.91 lakh.
- He also borrowed Rs 3 lakh from Harshvardhan Padiya and had paid him Rs 10,000 as interest to date.
The complainant alleged that the four accused repeatedly threatened to kill him if he failed to pay the monthly interest on time. They also threatened to physically assault him, creating a climate of fear and intimidation.
Police Investigation and Current Status
Police officials stated that the preliminary investigation indicates Chauhan was indeed trapped in a high-interest debt trap for the past two years. The case highlights the severe financial and personal distress caused by such predatory lending practices. Further investigation is underway to verify all the allegations and determine the specific role of each accused in the extortion and harassment.
No arrests have been made so far, as the police are gathering evidence and statements to build a strong case. The authorities are taking the matter seriously, given the serious nature of the threats and the violation of the Gujarat Money Lenders Act, which regulates money lending to prevent exploitation.
This incident underscores the risks associated with unregulated high-interest loans and the importance of legal recourse for victims of financial harassment. The police are urging others in similar situations to come forward and report such activities to prevent further victimization.
