Abhay is getting too lenient!

Let the principal amount be Rs. $\text{P}$ , rate of interest be $\text{R}\%$ per annum, $\text{T}$ be the time period and $\text{A}$ be the amount, then:-
$\begin{aligned} \text{A} & = \dfrac{\text{PRT}}{100} + \text{P}\\ \\ 127 & = \dfrac{\text{P} × 9 × 3}{100} + \text{P}\\ \\ 127 & = \dfrac{27\text{P}}{100} + \text{P}\\ \\ 127 & = \dfrac{127\text{P}}{100}\\ \\ \text{P} & = \dfrac{127 × 100}{127}\\ \\ & = \color{#3D99F6}{\boxed{100}} \end{aligned}$

Let the initial amount of money be $x$

The simple interest is given as $0.09x$

The total amount of loan, $A_n$ after $n$ years for a simple interest loan is given as

$A_n = x + 0.09xn$

$A_3 = 127\\ x+0.09x(3) = 127\\ x+0.27x=127\\ 1.27x=127\\ x=\boxed{100}$

Note: The amount of money after $n$ years for simple interest follows an arithmetic progression