On Friday, police in Thudiyalur in rural Coimbatore arrested a pawnbroker for charging exorbitant interest rates and intimidating a property agent.
S. Sathish Kumar (39), a resident of Balaji Garden in Subramaniyampalayam near Thudiyalur, was arrested based on a complaint filed by K. Manickam (60) from Lakshmi Nagar in Edayarpalayam.
Police said Manickam was in real estate and selling used cars. He borrowed ₹5 lakh from Kumar at an interest rate of 4% three months ago. Manickam claimed that he repaid ₹2.5 lakh with interest to Kumar.
Kumar allegedly asked Manickam to pay the remaining amount at an interest rate of 7%. His complaint said Kumar met him at Appanaickenpalayam pirivu on Friday night and bullied him.
Following the incident, Manickam filed a complaint against Kumar at Thudiyalur police station. Kumar has been convicted for offenses under different sections of the Prohibition of Charging Exorbitant Interest Act of Tamil Nadu and Indian Penal Code section.
Police searched Kumar’s house on Friday and seized unaccounted money to the tune of ₹20.54 lakh. Kumar was arrested and taken into custody on Saturday morning. Police said Kumar was previously arrested for selling banned tobacco products in 2020.