Tamil Nadu Files First Case Under 2025 Anti‑Coercion Lending Law After Villupuram Recovery Bid

Overview

• Villupuram district police registered the case on February 13 at the T. V. Nallur police station, marking the first use of the 2025 Act.
• The recovery agency’s manager was arrested on February 14, produced before a local court, and remanded to judicial custody.
• Officers say agents tried to take an earth mover without due process, after which the borrower set himself on fire and was rescued with burn injuries.
• The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act took effect on June 9, 2025 to protect vulnerable borrowers, including farmers and women’s self‑help groups.
• State police instructed lending firms to follow legal recovery procedures and asked the public to report coercive practices to law enforcement.