Bengaluru
In yet another glaring case highlighting the rise of illegal usury in the city, a businessman has accused two individuals of collecting exorbitant interest—₹80 lakh—on a ₹25 lakh loan and continuing to harass him for more. The incident has triggered a criminal investigation under the Karnataka Prohibition of Charging Exorbitant Interest Act.
According to the complaint filed by Akshay Alavandi, a resident of Banashankari 2nd Stage, he had borrowed ₹25 lakh from Pradeep Gowda and Bhaskar Gowda in 2024 to set up a new business venture. The accused allegedly demanded weekly interest payments and forcibly collected a total of ₹80 lakh from him.
Akshay further alleged that the lenders began issuing death threats when he failed to pay an additional ₹70 lakh. They reportedly seized a Tata Nexon car registered in his wife’s name and coerced him into signing 29-30 forms, often used in property or vehicle transfer procedures, under duress.
The Central Crime Branch (CCB) has booked both accused under relevant provisions of the usury law and other IPC sections. Initial investigations have revealed that the duo was operating without any legal licence or registration to lend money.
“The accused are currently absconding, and steps are being taken to trace and apprehend them,” a senior CCB official said, adding that this case is part of a growing trend where illegal moneylending rackets exploit financially distressed individuals.
Cases of illegal “meter baddi” (exorbitant interest loans) have seen a spike across Bengaluru, especially post-COVID-19, as informal lending networks take advantage of small traders and entrepreneurs unable to access formal credit.
Authorities have urged citizens to come forward and report such activities, promising confidentiality and protection to victims.