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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
Based on the facts shared, this matter involves criminal intimidation and illegal money lending at an exorbitant interest rate, which is not legally enforceable. The alleged 12% monthly interest (144% p.a.) is usurious and can be challenged under the Usurious Loans Act and Section 23 of the Indian Contract Act, as such an agreement is against public policy. You may file a police complaint as well.
Helpful?
Adv. Nikhil Karwal
Adv. Nikhil Karwal
Delhi | 25+ Answers
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The interest charged at 12% per month (144% p.a.) is illegal and amounts to extortion and criminal intimidation. Verbal threats are also an offence even if not recorded. First, ensure your immediate safety. Do not confront him alone. Preserve any available evidence such as call logs, neighbours’ statements, CCTV footage from nearby shops or houses, payment proofs, and any previous messages. Make a brief written record of the date, time, place and exact words of the threat.
Approach the local police station with a written complaint for offences under Sections 503/506 IPC (criminal intimidation), Section 384/385 IPC (extortion), and, if applicable, provisions of the Delhi Money Lenders Act / Usurious Loans Act. If you fear retaliation, request that your complaint be kept confidential and seek protection. You may also send the complaint by registered post or through the online Delhi Police portal so there is a record.
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Adv. Madhvi Chopra
Adv. Madhvi Chopra
Delhi | 50+ Answers
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We can Neutralise the lender’s leverage (fear & threats)
We can Create legal protection without escalation
We can Convert an illegal loan into a controllable civil issue
Protect client anonymity initially
We can Close the matter by repayment on lawful terms
Rest contact us further in this regard
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Adv. Shakun Gosain
Adv. Shakun Gosain
Delhi | 25+ Answers
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In short:
• The interest demanded is illegal.
• Verbal threats are actionable.
• Lack of recordings does not bar remedies.
• All future interactions should be documented.
• Personal negotiations should be avoided.
• Preventive police protection is available where there is real fear.
• Repayment should be limited to principal and reasonable interest through lawful means.
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Adv. Yuganshu Sharma
Adv. Yuganshu Sharma
Delhi | 700+ Answers
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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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Adv. Keshav Agarwal
Adv. Keshav Agarwal
Delhi | 25+ Answers
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