A.ILANGOVAN B.B.A., B.L., No.

25, Gokhlae Road

Advocate Chinna Chokkikulam
Madurai-625 002

___________________________________________________________

23rd August 2008

To
M/s. India Bulls Credit Services Ltd.,
448-451, Udyog Vihar, Phase V,
Gurgaon – 122001

Sir,
Under instructions from my client Mr. G. Balamurugan Alangar Nagar,
P& T Colony, Madurai, the following notice is issued to you.
He states that your executive one Prabhu approached him and offered
your services of providing financial assistance at cheaper rate of interest in
the form of personal loan repayable by Equated Monthly Installments
(EMI). My client on his continuous insistence and advice demanded
Rs.1,00,000/- as personal loan. Immediately he obtained his signature at
various places in the printed form at your local office at Madurai and
received 10 blank cheques drawn on his banker ICICI Bank as a security for
repayment of the loan. After one week he received the communiqué from
your local office accompanying a cheque for Rs.15083/-. in his favour. Your
letter read among other facts that he was sanctioned a loan for Rs.16,000/-
only in application No. A 1044103 and deduction of Rs.80/- for processing
fee and Rs. 18/ towards Pre-EMI charges and Rs 99/- towards services
taxes. But that letter did not state the number of repayment EMIs. So my
client approached your local office to know for lesser amount sanctioned
than the loan sought and the number of EMI for the sanctioned loan. He was
advised to wait three months and then he would be sanctioned the remaining
loan amount of Rs.84,000/- and also the correct EMI would be informed to
him.
He further states that his monthly repayment of EMI started from 1st July
of 2007. His initial two EMIs were cleared through his banker. Afterwards
he approached your local office for the details of total EMI and the balance
loan amount of Rs.84,000/- but you did not respond him properly and
refuted to furnish details. However he continued to pay the EMI with
reservations either through bank or cash. So far he paid 13 EMIs and totally
repaid Rs.14,209/- for amount received Rs.15083/ - in one year. Having
paid almost the loan amount he demanded the remaining EMI yet to be paid
so as to close the loan. He was told that he has to still pay 16 EMIs.
My client states that he received only Rs.15,083/ from you for which he
paid Rs.14029/- and he was asked to pay Rs1093 x 16 . This means that you
charging exorbitant interest at the rate of 60 to 70 % violating the statutory
provisions and the regulations of Reserve Bank of India. Your claim based
on such exorbitant interest is legally untenable and my client is not bound to
pay. He further states that the cheques given to you have no legal bearing
and dischargeable debt. So you are not entitled to use the cheque in any form
holding my client responsible for it.
My client states that he prefers to settle the loan immediately on the
basis of normal interest rate at 18% which works out to Rs.18,000/- in total
on flat rate for amount received Rs.15083/-. He states that he has made
payments in EMI and hence the interest will be only half of the 18% on flat.
So his liability is limited only to around Rs.16,500/-.
He further states that while this is the fact your collecting agent
visiting his house with rowdy elements creating problem. If you have any
grievance and rationality in your demand contrary to my client’s contention,
your remedy is only before the court of law. And you are not expected to
send your people in the name of collection agents to his home for such
illegal demand.
So you are hereby called upon to resolve the dispute by vouching the
proper accounts and settle the score at once. You are also hereby called upon
to return all his cheques in your custody. Otherwise my client is constrained
to approach the proper forum for his remedy and redressal. In such event
you will be held liable for all costs and consequences thereof.

Advocate
Copy to
Regional Office,
Reserve Bank of India
Chennai