Bengaluru: The high court has directed Bengaluru police to promptly examine and act on a complaint filed by a senior citizen alleging illegal money-lending practices and coercive recovery methods, underscoring the stricter provisions under the Karnataka Prohibition of Charging Exorbitant Interest Act-2004.Justice Sachin Shankar Magadum passed the order while allowing a petition filed by a Bengaluru resident. The petitioner had submitted complaints on Dec 12, 2025 to the police commissioner and on Feb 27, 2026 to the assistant commissioner of police (CCB), alleging that an individual with whom he had financial dealings, had illegally retained his passport.The court noted that the complaint prima facie disclosed a cognisable offence under the amended Section 4 of the Act, which deals with charging exorbitant interest and coercive recovery practices. Referring to the enhanced penal provisions, Justice Magadum observed that the offence now carries a punishment of up to 10 years’ imprisonment and a fine of up to Rs 5 lakh.“When the complaint discloses ingredients attracting a penal provision punishable with imprisonment extending up to 10 years, the jurisdictional police officers cannot remain passive or merely contemplate a preliminary inquiry,” the judge said. He added that criminal procedure mandates the registration of a case once information revealing a cognisable offence is received.The court took note of the investigating officer’s apparent hesitation to proceed beyond a preliminary inquiry, possibly based on the earlier version of the law, which prescribed a maximum punishment of three years. However, the amendment significantly increased the severity of punishment, thereby elevating such offences to the category of grave cognisable crimes requiring immediate police intervention.Justice Magadum stressed that any person contravening the provisions of the Act, or resorting to harassment or coercion to recover loans, would attract stringent penalties. The legislative intent behind the amendment, he noted, was to address the exploitation of vulnerable sections of society by unscrupulous lenders.The court made it clear that in light of the amended provisions, police could not delay action by limiting the matter to a preliminary inquiry. Instead, they were required to register a First Information Report and proceed with the investigation in accordance with law.The order is expected to reinforce enforcement of anti-usury laws in the state and ensure quicker police response in cases involving allegations of exorbitant interest and coercive recovery practices.
