Visakhapatnam: Promoters of two private finance companies were detained today in Visakhapatnam in connection with the infamous call money racket, police said.
The Visakhpatnam police also seized some cash and related documents during raids at their respective offices.
According to R Mallikarjuna Rao, Inspector of City Task Force, raids were conducted on Sri Venkata Sai Finance and Chandra Finance on allegations of operating the racket.
While, police seized Rs 1.95 lakh cash, 122 blank promissory notes, 22 blank cheques and 160 loan books from Chandra Finance, Rs 8,600 cash, 30 blank promissory notes, 55 empty promissory notes and ledger book were seized from the other finance company.
The two promoters are being interrogated, the CTF inspector said.
'Call money' refers to a mode of private lending where loan is made available instantly at borrower's doorstep but at exorbitant rates, and the lender can demand repayment anytime over a call.
Yesterday, the Andhra Pradesh cabinet decided to appoint a judicial commission to probe the illegal private lending in the state which is in news due to the infamous racket, and the alleged sexual exploitation of women borrowers in some cases.
The commission would be headed by a retired High Court judge. In a related development, Vijayawada Police Commissioner D Goutam Sawang too cancelled his leave in view of the ongoing investigations in the case.
The pressure on the Chandrababu Naidu government to act against such private lenders, who sometimes usurp the mortgaged assets of borrowers, is increasing as some operators, allegedly involved in the racket are said to be politically connected.
So far, 80 call money operators had been arrested in the state barring in Vijayawada. Of them, 27 had links with YSR Congress, six with TDP and three with CPI; others had no political affiliation, according to Information Minister Palle Raghunadha Reddy.
The Visakhpatnam police also seized some cash and related documents during raids at their respective offices.
According to R Mallikarjuna Rao, Inspector of City Task Force, raids were conducted on Sri Venkata Sai Finance and Chandra Finance on allegations of operating the racket.
The two promoters are being interrogated, the CTF inspector said.
Advertisement
Yesterday, the Andhra Pradesh cabinet decided to appoint a judicial commission to probe the illegal private lending in the state which is in news due to the infamous racket, and the alleged sexual exploitation of women borrowers in some cases.
Advertisement
The pressure on the Chandrababu Naidu government to act against such private lenders, who sometimes usurp the mortgaged assets of borrowers, is increasing as some operators, allegedly involved in the racket are said to be politically connected.
Advertisement
COMMENTS
Advertisement
Andhra Government To Give Rs 10 Lakh To Family Of Gang Rape Survivor The Only Indian State That Doesn't Have A Capital Opinion: Opinion | Will Naidu And Reddy Finally Be Able To Solve A Decade-Old Problem? Windows Computers Lead To 'Blue Screen Of Death' Due To CrowdStrike Error In 1st Statement After Outage, CrowdStrike CEO Says... Massive Worldwide Microsoft Outage: Flights, Markets, Stock Exchange Down Woman Says Jindal Group Executive Groped Her On Flight, Naveen Jindal Reacts How World Scrambled To Deal With One Of The Biggest IT Crashes: 10 Points Fighting And Kisses: 5 Big Takeaways From Trump's Speech Track Latest News Live on NDTV.com and get news updates from India and around the world.