Nandyal police on Wednesday busted a loan scam and arrested four persons including a Municipal Councillor here on Wednesday. Police arrested YSRC Congress Municipal Councillor B. Kareemullah, his brother-in-law Mohammed Rafi and accomplices Mohammed Ghouse and Shaik Anwar Basha, all natives of Bonthala street in Nandyal and seized a computer, two printers, Rs. 2 lakh in cash and 43 seals of different government departments, Kurnool Superintendent of Police Ake Ravikrishna told the media here.
Describing the modus operandi , the SP said the gang used to submit online application seeking loans meant for minority groups and submit photographs of fictitious applicants and documents such as ration cards, voter identity cards and Aadhaar cards prepared with fake seals and forged signatures in a computer in Kareemullah’s house at Saleemnagar. Following the same process, the gang had availed of loans worth Rs. 2 lakh with subsidy amount of Rs. 1 lakh each on the name of 21 fictitious beneficiaries in the last two years, Mr. Ravikrishna said.
The gang members had shared the subsidy money among them after those were credited to the savings bank accounts of the fictitious beneficiaries, while they had invested the loan amount in fixed deposit schemes in the same banks and showed recovery after a few months.
The sanctioning of such loans needed clearances from municipality, bank and Minority Welfare Department, the SP said.
Meanwhile, Nandyal DSP Y. Harinath Reddy has been entrusted with the probe into the role of municipal officials, bankers and minority finance corporation officials in the scam.
“We will ascertain whether the officials had colluded with the accused or were negligent in verifying the authenticity of the applications. All the minority loans issued across the district in the last two years and the details of the beneficiaries will be randomly verified,” Mr. Ravikrishna added.
The SP complimented Nandyal DSP, CIs M. Ramaiah Naidu, Pratap Reddy and V. Venkataramana, SI P. Ashok and staff for busting the scam. Atmakur DSP N. Supraja, who was in-charge DSP of Nandyal for some time also participated in the investigation.
The accused used to submit applications online, along with fake documents prepared with fake seals and forged signatures
The gang had availed of loans on the names of 21 fictitious beneficiaries in the last two years
The accused used to submit applications online,
using forged documents
They used to share the subsidy money, while investing
the loan amount in FD schemes
