Madurai District Crime Branch police have arrested two persons, including a retired Deputy Superintendent of Police, Subramanian, 67, under the provisions of the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003.
The police said that M. Petchipandian, 64, of Tirunelveli district and his relative Subramanian of Nagamalai Pudukottai reportedly threatened a retired Professor of Madurai Kamaraj University, G. Arumugam, when he sought return of documents of his property on repayment of a loan of ₹2 crore he had taken from Petchipandian.
Mr. Arumugam, who was running a trust, had taken the loan in 2016 from Petchipandian at an interest rate of 3%.
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His wife is a doctor. The couple, who had managed to pay a monthly interest of ₹6 lakh for 11 months, failed to pay it in July 2018.
Following this, the two accused, along with Petchipandian’s wife Eniyammal, threatened them.
Consequently, the couple paid them ₹2.55 crore and sought their property documents.
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“The couple had made a sale deed of a marriage hall that is worth a few crores of rupees in the name of Eniyammal as a collateral security while taking the loan,” a police officer said. However, the property had been pledged by Eniyammal in the name of Subramanian for ₹15 lakh. It was Subramanian, who introduced his relative Petchipandian to Mr. Arumugam when he needed a loan.
“The trio demanded more money for returning the documents,” Superintendent of Police N. Manivannan said.
District Crime Branch Inspector L. Jeyamani arrested the duo on Tuesday. They were later remanded in judicial custody.