First Case Under New Tamil Nadu Lending Act After Harassment Incident

In a pivotal legal development, police have lodged the first-ever case under the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025, following a disturbing incident of alleged harassment in Villupuram district. The episode, which took place on February 13, involved a borrower driven to attempt self-immolation due to aggressive recovery actions by lending agents.

As per official reports, the victim had defaulted on a loan taken to purchase a JCB vehicle, leading recovery agents to his residence intending to seize the vehicle. The officers reportedly bypassed proper legal channels, prompting the borrower to resort to self-harm in a moment of desperation.

The controversial 2025 Act, enacted on June 9, exists to safeguard vulnerable groups, including farmers and women's self-help organizations, from harsh recovery tactics. Authorities stress adherence to legal norms and encourage citizens to report any unlawful recovery attempts.