The Madras High Court has questioned whether it is legal to charge 30% interest
on a loan for filmmaking, even if the borrower agreed to it. This came up while
the court paused a single judge’s order that had asked actor Vishal to pay Rs
21.29 crore to Lyca Productions with 30% interest. The court also asked Vishal
to deposit Rs 10 crore while the appeal is being considered.
A division bench of Justices S M Subramaniam and Mohammed Shaffiq said they will
examine whether such high interest violates the Tamil Nadu Prohibition of
Charging
Exorbitant Interest Act, 2003.
On Monday, Vishal’s lawyer said that the actor is not as wealthy as Lyca claims.
The court then asked if Vishal is ready to be declared insolvent if that is true.