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Property dealer threatening to seize assets over illegal 12% monthly i


14-Jan-2026 (In Criminal Law)
Context: Palam, SW Delhi. Local property dealer lent my father ~2.6L at 12% per month (144% p.a.). He gave a 10-day ultimatum, threatened to "forcefully sell our assets," and said he'd "do something bad" if not paid. The threat was verbal. An earlier abusive WhatsApp text was deleted. His shop is in our gali. He has local influence. Problem: We have no recorded proof of the threat. We're willing to repay the principal + fair interest, but fear violence if we complain and he guesses it's us (lik
Answers (5)

Answer #1
876 votes
Charging 12% per month and threatening violence/asset seizure is illegal extortion. Pay only via bank with receipt. Send a written notice offering principal+reasonable interest. File a police complaint and seek protection; preserve any messages/call logs and involve a local lawyer immediately.
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Advocate Keshav Agarwal

Adv. Keshav Agarwal

LawRato Delhi | 25+ Answers
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Answer #2
524 votes
File a police complaint for criminal intimidation and report the illegal 144% interest rate under the Money Lenders Act. Record future calls and hire a lawyer to negotiate a fair legal settlement as per the concerned provisions of law.
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoDelhi | 50+ Answers
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Answer #3
988 votes
Based on the facts stated by you, the interest rate of 12% per month (approximately 144% per annum) is prima facie excessive and may attract provisions relating to illegal money lending, criminal intimidation, and extortion, depending on evidence and local laws applicable in Delhi. No individual has any legal right to forcibly sell your family’s assets or threaten harm for recovery of money. Even if the threat was verbal and not recorded, the law does not require documentary proof at the initial stage to seek protection. A complaint can be made narrating the facts, prior conduct, rate of interest, ultimatum given, and fear of violence. The police are duty-bound to make an entry and assess the threat perception. If there is apprehension of retaliation, a written complaint can be made requesting confidentiality and preventive action.
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Advocate Amit Antil

Adv. Amit Antil

LawRatoDelhi | 5+ Answers
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Answer #4
1000 votes
You are not wrong and 12 % monthly is illegal , if you have proof in written then we Will send legal notice to him and also make him liable to file case under criminal intimidation . Do you have proof of online cash transfer? We can also approach to police as well in this case to register a case as cheating
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Advocate Deepak Ranjan

Adv. Deepak Ranjan

LawRatoDelhi | 25+ Answers
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Answer #5
774 votes
You may initiate criminal proceedings against the person who is threatening you and your father. If the police declines to register an FIR, we can approach the learned Magistrate by way of an appropriate complaint seeking directions for registration of the FIR and investigation. Once the FIR is registered, the accused is likely to come to the table for an early settlement, potentially on more reasonable terms. Please feel free to reach out if you require any further legal assistance or wish to proceed with the next steps.
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Advocate Pragati Srivastava

Adv. Pragati Srivastava

LawRatoDelhi | 25+ Answers
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