VILLUPURAM, India (AP) — A recovery agent faces charges under Tamil Nadu’s new money lending law after his aggressive tactics drove a loan defaulter to attempt self-immolation, marking the first enforcement of the statute since it took effect on June 9, 2025.

T.V. Nallur police arrested the manager of the recovery agency on February 14, one day after he and colleagues showed up unannounced at the complainant’s home demanding overdue payments. The man had borrowed money five years earlier from a lending agency in T.V. Nallur to buy an earth mover. He stopped paying monthly installments two-and-a-half years ago.

Officers said the agents demanded immediate repayment and moved to take the vehicle without court orders or proper notice. The complainant retreated to a nearby shed, doused himself in petrol and lit a match. Bystanders extinguished the flames and rushed him to a hospital with serious burns.

Police booked the manager under relevant sections of the Bharatiya Nyaya Sanhita, along with sections 20 and 21(ii) of the 2025 Act, which bars coercive recovery practices by lenders. He appeared before a local magistrate the same day and landed in judicial custody.

“This is the first instance where Tamil Nadu police have invoked the new law,” a Villupuram district police statement noted. The statute aims to curb illegal high-interest lending and strong-arm tactics that have plagued the state for years.

Authorities issued a warning to all money lending entities: stick to legal channels for recoveries. They urged the public to report any threats or unlawful seizures straight to police stations.

The incident highlights rising tensions over debt collection in rural Tamil Nadu, where earth movers and heavy equipment often serve as collateral for small business loans. Officials did not release the agent’s name or the lending agency’s details, citing the ongoing probe.

Tamil Nadu enacted the Money Lending Entities Act earlier this year to replace outdated regulations. It mandates licensed operations, caps interest rates and prohibits violence or intimidation during repayments. Penalties include fines up to 500,000 rupees ($6,000) and jail terms.

Police across the state plan stricter monitoring of recovery agents, especially those handling vehicle loans in farming districts like Villupuram. The complainant remains hospitalized, according to officers. No updates on his condition were available late Friday.

For those facing suicidal thoughts, Tamil Nadu offers help through the health helpline at 104, Tele-MANAS at 14416 and Sneha suicide prevention at 044-24640050.