Nagpur/Nanded: In what police have described as a “classic case of financial exploitation,” four members of a prominent Nagpur-based family have been booked in Nanded for allegedly duping a businessman of more than Rs 1.5 crore on a loan of just Rs 48 lakh. The accused, all belonging to the Bharut family of Wardhaman Nagar, allegedly used exorbitant compound interest, property manipulation, and threats to bleed their victim dry over nearly eight years.
The complaint was filed by 61-year-old businessman Shantilal Motilal Jain, a resident of Shivajinagar, Nanded. Based on his account and preliminary inquiry, the Economic Offences Wing (EOW) directed Shivajinagar police to register a case against Premchand Jhumbarlal Bharut, Anil Jhumbarlal Bharut, Naresh Jhumbarlal Bharut, and Shrenik Anil Bharut.
Gold Rate
26 Sept 2025
According to investigators, the ordeal began in 2015 when Jain borrowed Rs 48 lakh from the Bharut brothers to purchase a house. The loan was extended at an interest rate of 1.25% per month, unusually high and verging on usurious. But the financial burden was not the only trap.
The Bharuts allegedly insisted that the house registry be executed in Premchand Bharut’s name, while also coercing Jain into transferring 42 gunthas of farmland in Nanded to Anil Bharut. Faced with urgent financial needs, Jain complied with both conditions.
Jain and his son claim they faithfully paid both principal and interest over the years. Yet, in 2022, Anil Bharut sold the farmland for Rs 41 lakh without clearing Jain’s accounts. Matters escalated in 2023, when Jain’s son Mayur approached the Bharuts’ Nagpur office to settle the balance.
To his shock, the Bharuts allegedly inflated the dues using compound interest calculations and claimed that an additional Rs 36 lakh was payable. They reportedly refused to return crucial property documents unless the amount was handed over, even threatening Mayur with dire consequences if he resisted.
Under pressure, the family agreed to proceed with the property registration. During the process, the government valuation pegged the house at Rs 54 lakh. Premchand allegedly instructed Mayur to pay the entire amount by cheque, assuring that Rs 18 lakh in cash would be refunded later.
However, after receiving five cheques, the Bharuts allegedly reneged on their promise. Instead, they began blackmailing the family further by filing a cheque bounce complaint, even dragging Jain’s wife into the dispute to escalate pressure.
With no relief in sight and mounting harassment, Jain finally approached the EOW in Nanded, which conducted a probe and found prima facie evidence of fraud. Based on its findings, Shivajinagar police registered an FIR against all four accused under sections of the Indian Penal Code relating to cheating, fraud, criminal breach of trust, and criminal intimidation.
The case has triggered shockwaves in both Nagpur and Nanded, not only because of the amount involved but also due to the alleged misuse of family ties, Jain and the Bharuts are said to be distant in-laws.
Police officials said that further investigation is underway to track the money trail, the sale proceeds of the farmland, and the extent of other financial dealings carried out by the accused. “The probe will reveal whether similar tactics were used against others as well,” a senior officer confirmed.
For now, the Bharut family faces serious charges that could see the alleged loan sharks prosecuted for systematically exploiting a businessman over nearly a decade.
