Hyderabad

Finance racket busted

Two persons running an illegal daily finance racket were arrested by the Nacharam police and Special Operations Team, Malkijgiri zone. The police recovered Rs. 56.2 lakh in cash and bank cheques worth Rs.1 core and other materials, which were taken as collateral from people to whom loans were given at high interest rates by the accused.

According to the Cyberabad East police, the accused are A. Srinivas, (49), a resident of Habsiguda, and P. Veeresham, a resident of Ram Nagar. Another person named Krishna Murthy is absconding. Srinivas was running the illegal finance business and had hired the other two to collect amounts everyday from those who were loaned money.

Srinivas, who was running the finance business from his residence, was doing so without any registration on his name from the authorities concerned.

He was collecting interest as high as 20 per cent from people. Giving hand loans to customers, he would take their cheques, blank cheques, sale deed documents, Patta passbooks title deeds, and promissory notes as surety and security.

People would also be charged double the interest amount on failing to pay their daily instalments to Srinivas. Veeresham and Krishna Murthy would collect money from the customers and harass them, often threatening them with dire consequences, said a press release from the police. Based on complaints from two persons named Ravinder and Santhosh, cases were registered against the three accused.

The Cyberabad East police also said that action would be taken against such financiers if victims come forward to complain against them orally or in writing.

After arresting Srinivas and Veeresham, the police recovered Rs. 56.2 lakh in cash, 150 blank cheques amounting to almost Rs. 1 crore, day sheets (for maintaining the daily status of collecting money), Patta passbooks and title deed books, 93 original sale deeds, bank passbooks, cheque books, and two mobile phones.

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Printable version | Feb 26, 2021 7:27:50 AM | https://www.thehindu.com/news/cities/Hyderabad/Finance-racket-busted/article14639938.ece

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