Call money is an instant loan available over a call through flexible process where the lender comes home with money, promissory note and other documents which can fix borrowers. The interest rate usually ranges from 120 per cent to 200 per cent. Another key ingredient in the process is that the lender can demand return of the money over a call any time and anywhere.
In case the borrower is unable to repay, vehicles, houses and other movable and immovable properties are demanded as a guarantee. Sources say the business of high interest rate is close to over Rs. 600 crore in Vijayawada . Hundreds of women were threatened, coerced and dragged into flesh trade if they were unable to repay on time. The police busted the racket when a Vijayawada-based family lodged a complaint last week. In one of the cases, the victim paid about Rs. 6 lakh for Rs. 1.5 lakh loan she took. Police sources reveal these lending gangs have close links with political leaders and have a network spread across A.P. and Telangana.
So far, the Vijayawada police have taken two people into custody and are on the lookout for some more kingpins. Cases have been booked under criminal conspiracy (Sec. 120), cheating (420), rape (376), extortion (384), sexual harassment (354) and defamation (120 B), all under IPC.
