Finance company booked on charges on extortion

COIMBATORE: Tirupur based Muthoot Fincorp limited has been booked for extorting higher interest rate from one of its customers. The case is based on a complaint failed by A Mohana Sundaram, a textile designer from Tirupur.
Police said, Mohana Sundaram had pledged 38 sovereigns of gold jewellery with the company on November 7, 2009 and borrowed Rs 3, 94,600.The firm had charged two percentage as interest per month. As he could not repay the loan amount, he was informed that the jewellery will be auctioned.
"To avoid the auction I paid Rs 40,000 and the auction was cancelled," said Sundaram.
Meanwhile, the firm demanded him to pay capital amount with 3.5 percentage interest. Finally the officials demanded at least Rs 6.68 lakh from Mohana Sundaram who refused to pay the amount, police said.
"I went often to the firm and demanded them to hanover the gold jewels to me. But they refused and threatened me" said Mohana Sundaram.
The victim lodged a complaint with Tirupur police station on December 22, 2011. The Tirupur north police have registered a case against the firm. under section 506 (i) (criminal intimidation) of Indian Penal Code and 4 of Tamil Nadu Prevention of charging extort act 2003.
"Based on the complaint we have registered a case against the firm" said V Balakrishnan, superintendent of police, Tirupur district.
However, the firm came to settle the issue with the victim on Saturday. 'Finally, the firm has demanded Rs 5 lakh from the victim and he paid the amount and got the gold jewels. After the negotiation the problem was settled" said Mohana Sundaram. When contacted, the senior offial of the company, Biju refused to comment. He said that he is not aware about any FIR filed against the firm.
EOM
Coimbatore: Tirupur based Muthoot Fincorp limited has been booked for extorting higher interest rates from one of its customers.
Police said, A Mohana Sundaram, 33, a textile designer of Tirupur, had pledged 38 sovereigns of gold jewellery with Muthoot Fincorp limited in Tirupur on November 7, 2009 and borrowed Rs 3, 94,600. The firm had charged two percentage as interest rate. He could not repay the loan amount. The firm had sent auction notice to Mohana Sundaram on November 23, 2010 and informed that the 38 sovereigns of gold jewels would be auctioned on November 27.
"After receiving the auction notice, I went to the firm in November 24, 2010 and told the Muthoot Fincorp officials that I would get back the gold jewels immediately. But the officials missed the gold jewels and requested me that give some time to find out. One of the officials of the firm demanded to retrieve the gold jewels and insisted me to pay Rs 40,000" said Mohana Sundaram.
Immediately he paid the amount and retrieved the gold jewels from an auction. Meanwhile, the firm demanded him to pay capital amount with 3.5 percentage interest. Finally the officials demanded atleast Rs 6.68 lakh from Mohana Sundaram who refused to pay the amount, police said.
"I went often to the firm and demanded them to hanover the gold jewels to me. But they refused and threatened me" said Mohana Sundaram.
The victim lodged a complaint with Tirupur police station on December 22, 2011. The Tirupur north police have registered a case against the firm under section 506 (i) (criminal intimidation) of Indian Penal Code and 4 of Tamil Nadu Prevention of charging extort act 2003.
"Based on the complaint we have registered a case against the firm" said V Balakrishnan, Superintendent of Police, Tirupur district.
However, the firm had come to conduct pacify talk with the victim on Saturday. 'Finally, the firm has demanded Rs 5 lakh from the victim and he paid the amount and got the gold jewels. After the negotiation the problem was settled" said Mohana Sundaram.
However when contacted the senior offial Biju refused to comment on the issue. He said that he is not aware about any FIR filed against the firm.
EOM