Hi to all members,
My sister took borrowed money @10% interest per month from someone she knows.
That guy asked her to give signed blank cheque, which she did.
She used to take money whenever needed, and that person happily gave it everytime.
Every month he collects the interest amount.
Total amount borrowed is 5 lacs in 5 years, amount repaid as interest is around 12-15 lacs, now she is not able to repay anymore as the principle is intact - she has got into debt trap.
Now if she stops paying interest, that person will write any amount/date and deposit the cheque to file a cheque bouse case.
All transactions are in cash.
My questions is : What we should do, should we go and block the checque, since that cheque is 5 yrs old, she doesn't know the cheque number.
What action he can take against my sister, as he doesn't have any proof of lending any money to her.
He is in possession of blank signed cheque, 5 yrs old.
I will really appreciate if you people guide us, because my sis husband feels that she may go behind bars.
Thanks in advance