Tamil Nadu farmer dies by suicide after harassment by loan recovery agents

India Today

01-05-2025

A 55-year-old farmer in Tamil Nadu's Salem district died by suicide, following alleged harassment by loan retrieval agents. His death came just two days after the state Assembly passed a Bill to curb coercive recovery practices.Vadivelu, a resident of Thukkiyampalayam near Vazhapadi in the district, had borrowed Rs 4.80 lakh from a private bank, pledging his land as collateral. He was reportedly confronted by the bank's loan retrieval agents on Tuesday for having defaulted on an April 10 instalment. According to his family members, the agents behaved aggressively and refused to grant him any extension to repay the dues.advertisement'Two men came and asked for money. He had two days' time earlier but as he couldn't get the money, he asked for more time. But the two guys refused to leave and demanded the money,' said a relative of Vadivelu, who witnessed the exchange. 'Even I requested them to leave, saying that if we had money, we would have given it but they asked me to either pay or be quiet so I left from the place.'
'I saw them keep asking him again and again. They were repeatedly telling him to give the money, and do other work and didn't let him leave,' the relative added. Later that day, Vadivelu reportedly consumed pesticide and died. His death triggered unrest in the village, with residents demanding justice and initially refusing to accept his body. In response, Vazhapadi Police detained the manager of the private bank for questioning. Only after this development did Vadivelu's relatives agree to accept the body.advertisementThe incident comes close on the heels of the state Assembly passing the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill earlier this week. The Bill, introduced by Deputy Chief Minister Udhayanidhi Stalin, aims to prohibit aggressive loan recovery methods by private moneylenders and recovery agents.Speaking in the Assembly, Udhayanidhi Stalin had said that unethical recovery processes were becoming common and that such harassment had already pushed many to suicide and destroyed families. The new legislation provides for stringent action against those found guilty of such practices. Under the Bill, if a borrower dies by suicide due to harassment, the responsible party may be charged with abetment to suicide under Section 108 of the Bharatiya Nyaya Sanhita (BNS).Police have initiated further investigation into the circumstances of Vadivelu's death.