Ahmedabad Garment Trader Files Police Complaint Against Moneylenders for Extortion and Illegal Practices
A 24-year-old garment trader from Kubernagar in Ahmedabad has accused four private moneylenders of charging exorbitant interest rates and issuing threats, even after he repaid more than double the amount he originally borrowed. According to a complaint filed with the Airport police on Saturday, the trader took loans totaling approximately Rs 14.2 lakh from the accused individuals but ended up paying over Rs 34 lakh through cash and online transfers, while the lenders allegedly continued to demand additional money.
Details of the Alleged Harassment and Financial Exploitation
The complainant, who operates a garment shop in Kubernagar, approached the police on March 7, reporting harassment by four men who lent him money when he faced financial losses in his business last year. He borrowed money at various times between July and September 2025. Initially, the lenders purportedly agreed to charge monthly interest rates ranging from 1% to 5%. However, the trader alleged that they later imposed steep and arbitrary rates, sometimes claiming daily interest, which significantly increased his debt burden.
Despite repaying large sums through bank transfers and cash, the accused persistently demanded more money and threatened the trader and his family. In one instance, he borrowed Rs 1 lakh but repaid more than Rs 5.5 lakh, yet the lenders allegedly continued to demand an additional Rs 7 lakh. Similarly, another lender lent him Rs 4.5 lakh but recovered over Rs 10 lakh and even seized the trader's scooter as security, exacerbating his financial distress.
Police Investigation and Legal Action
The complainant also reported that one of the lenders forced him to record a video admitting he owed Rs 21 lakh while threatening him with dire consequences. In response, the Airport police have registered a case under charges of illegal money lending, extortion, and criminal intimidation. Authorities have initiated a thorough investigation into the matter to uncover further details and hold the accused accountable.
This incident highlights ongoing concerns about predatory lending practices in urban areas, where vulnerable individuals often fall victim to high-interest loans and intimidation tactics. The police are urging citizens to report similar cases to prevent such exploitation and ensure legal recourse for affected parties.
