Money lending and jewels-reg

Querist : Anonymous (Querist) 21 August 2026 This query is : Resolved
Sir,
I borrowed a sum of 4 lakhs from private money lender and paying interest regularly. After one year, i pledged jewels of 45 grams at the money lender separately and the lender assured me there is no connection for already borrowed money. Now while takeback my jewels, the lender refused to give the jewels and stated that unless repayment of borrowed money completed. The jewels need for family function and now i have money only for takeback of jewels. I also assured to repay my borrowed money in six month period and he refused. Please guide me in this matter.

Follow Query

Report Abuse

Quick Summary

A person borrowed money and later pledged jewels as separate security. The money lender is now refusing to return the jewels, demanding repayment of the loan first. The lender may be operating without a required license, and the borrower is seeking advice on how to retrieve their pledged items for a family function.

kavksatyanarayana (Expert) 21 August 2026
When you pledged the jewels, did you go for any agreement? A private lender shall obtain a license to lend money or pledge jewels. Do you know whether he obtained a license for lending money/pledge jewels? If he did not obtain a license from the District Collector you can report against him to the District Collector, who is the licensing authority.

Dr. J C Vashista (Expert) 22 August 2026
Whether the money lender has given receipt of jewels pledged?
Is there any written agreement ?

P. Venu (Expert) 23 August 2026
Is the money lender a registered/licenced under the extant laws? If yes, what is the law applicable?

Please note that each State has its own laws.

T. Kalaiselvan, Advocate (Expert) 27 August 2026
Under Indian law, a lender generally cannot retain pledged property for an earlier, unrelated debt unless there was an explicit written contract granting them a "general lien" or "cross-collateralization" right. According to Section 174 of the Indian Contract Act, 1872, a lender (pawnee) is presumed not to retain the pledged goods for any debt or promise other than the specific loan for which they were pledged, unless there is an express contract to the contrary. Private money lenders do not automatically enjoy a statutory general banker's lien under Section 171.
Write a formal, written notice or letter stating that you are ready and willing to pay the full principal plus interest for the gold loan only to redeem your 45 grams of gold.
Private money lenders operate under State Money Lenders Acts (e.g., Tamil Nadu Money Lenders Act, Karnataka Money Lenders Act, etc.).
File a complaint with the local Revenue Divisional Officer (RDO), Tahsildar, or the District Registrar / Inspector of Money Lenders. Unlicensed or coercive money lending practices are illegal under state laws.
Visit your local police station and file a complaint for Criminal Breach of Trust and illegal extortion/withholding of property.
If the police direct you to a civil court, hire a local advocate to file a Civil Suit for Redemption of Pledge & Return of Movable Property along with an application for emergency interim relief.
The court can order the lender to deposit the gold with the court officer upon your payment of the gold loan amount.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries