Malkajgiri SOT, LB Nagar Police Arrested Four People 'Moneylending Fraud'

The Malkajgiri Police Special Operations Team (SOT), LB Nagar Zone, along with LB Nagar police, arrested four more individuals on Thursday in connection with an organised illegal moneylending and loan fraud network operating in the city.

According to Malkajgiri Police Commissioner B. Sumathi, the gang targeted financially distressed persons, senior citizens, employees and businesspersons by promising substantial loans through intermediaries.

After gaining their confidence, the suspects allegedly deducted exorbitant amounts as advance



interest and disbursed only a portion of the promised loan. They also collected additional money on the pretext of arranging bigger loans.

“The gang obtained promissory notes and signed blank cheques for amounts much higher than the actual loans advanced. Even after borrowers repaid the money, the accused retained the documents and continued demanding additional amounts. 

Victims who questioned the transactions or sought the return of their documents were allegedly threatened with criminal cases and physical harm,” said B Sumathi.