A farmer from Gopalpur, Bijnor, has filed a complaint against Dhara Finance, claiming that he repaid ₹30 lakh on an initial ₹9 lakh loan taken in 2014. Despite this, the firm is demanding an astronomical ₹1.24 crore and has allegedly illegally auctioned eight bighas of his land.
Farmer’s Dramatic Repayment Amid Growing Debt
According to farmer Harveer Singh, he mortgaged about eight bighas of land to secure the ₹9 lakh loan. By 2019, he had repaid over ₹30 lakh—more than triple the principal amount. Singh alleges that Dhara Finance continued to accrue interest and hidden charges, inflating his outstanding debt to ₹1.24 crore. When he failed to pay further, the finance company reportedly sold his mortgaged land for ₹40 lakh without proper notice or consent.
Local police have registered statements from both Singh and company officials. ASP Sanjeev Bajpai of Bijnor has been assigned the investigation, while SP Abhishek Jha has ordered a parallel audit of the firm’s transaction records by tax and revenue authorities to determine any irregularities.
Finance Company Responds as Court Battle Looms
In response, Dhara Finance MD Gajendra Singh told local media that the matter is currently before the courts and he will comply with any judicial verdict. Company representatives argue that the land disposal was conducted under contractual rights. However, Harveer Singh disputes this, saying that no proper statutory auction or legal notice was issued and that he was unaware of its execution until after the fact.
A legal expert noted the complexity: “Should the debt have been inflated through annual compound interest or penalty clauses unknown to the borrower, courts must determine if the company abused its contractual rights.”
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.