Karnataka Man Forced To Pay Rs 18.6 Lakh Interest On Rs 3 Lakh Loan; Police Arrest Moneylenders
Belagavi SP K. Ramarajan said operating an unlicensed moneylending business and harassing borrowers through illegal practices is a punishable offence.
Published : July 8, 2026 at 12:31 PM IST
Belagavi: Police in Karnataka's Belagavi district arrested two private lenders for illegally collecting Rs 18.6 lakh in interest on a Rs 3.1 lakh loan from a labourer and continuing to threaten him for more money.
The arrested individuals have been identified as Aditya Ashok Bhosale and Abhishek Ashok Bhosale, both residents of Raibag town. According to police, the duo operated an illegal money lending business, charging exorbitant interest rates while subjecting borrowers to severe mental and physical harassment and issuing death threats.
Police said the victim, Vitthal Tukaram Mane, had borrowed Rs 3.10 lakh from the accused. Although the accused allegedly recovered Rs 18.60 lakh from him as interest alone, they continued to demand additional payments and allegedly threatened to kill him if he failed to comply.
According to Mane's complaint, the accused also prevented him from carrying out his livelihood by stopping him from attending the local market and purchasing essential ration supplies. They allegedly forced him to leave his home, compelling him to stay at a relative's farmhouse.
The complainant further alleged that the accused coerced him into signing six blank cheques of Union Bank of India, blank cheques of Canara Bank, and blank bond papers with a face value of Rs 500, using the loan as leverage.
Based on the complaint, police registered a case under Sections 352 and 351(2) of the Bharatiya Nyaya Sanhita (BNS), 2023, along with Sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act.
The two accused were arrested on July 4 and produced before a court, which remanded them to 14 days of judicial custody. Police said further investigation is underway.
Belagavi Superintendent of Police K. Ramarajan said operating an unlicensed moneylending business and harassing borrowers through illegal practices is a punishable offence.
He appealed to the public not to give in to threats from such moneylenders and urged anyone facing similar harassment to immediately approach the nearest police station and lodge a complaint without fear.
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