MADURAI: A 52-year-old dairy entrepreneur, J Rajapandi of A Malampatti, died by suicide at the MGR Bus Stand on Friday after a private bank sealed his dairy products firm earlier that day over unpaid loan interest, police said.
Rajapandi had availed a ₹3-crore loan from the bank in 2022 and reportedly kept up with repayments until about seven months ago. Despite a prior notice warning of action if dues weren’t cleared by June 27, the bank allegedly sealed the unit even as Rajapandi was in the process of arranging payment.
According to a complaint by his son, R Jervinpal, Rajapandi had managed to arrange ₹35 lakh—the outstanding interest—and was attempting to secure a demand draft when the firm was locked. Distressed by the action, he died by suicide shortly after.
The Mattuthavani police have registered a case under Section 194 of the Bharatiya Nyaya Sanhita (BNSS).
Tamil Nadu Milk Dealers Welfare Association president S A Ponnusamy strongly condemned the bank’s move, stating that it ignored Rajapandi’s efforts to settle the dues. He demanded an abetment to suicide case be filed against the bank officials responsible.
The incident has sparked outrage within the dairy industry and renewed calls for sensitivity and fairness in banking recovery procedures.