18 Private money lenders arrested by Police

Hyderabad, March 18: The Charminar police have arrested 18 persons, who were private money lenders and running chit funds going against the RBI rules on Friday.

The Police have planned a special drive against private moneylenders in the city and arrested 18 of them.

Deputy Commissioner of Police (South) V Satyanarayana said, "Policemen raided the houses of automobile financers, chit fund business operators and moneylenders in various localities of Old City. Property documents of several plots and houses were seized from them. Also, blank stamp papers, promissory notes and plain papers on which signatures of borrowers are affixed were also seized."

"The value of properties mortgaged with the financers could be around Rs 20 crore," he further said. On the financial source and whether benami's were involved, the DCP said a probe was on to find whether there was a nexus between businessmen or gold traders and moneylenders.

Post demonetisation, the moneylenders were lending money and collecting exorbitant interest as high as 40 percent from borrowers, police said. "We are requesting people to come forward and lodge complaints with us. We will provide security," the DCP said.

Amongst those arrested were Iqbal Bin Khalifa and Saber, both residents of Chandrayangutta. A total of nine cases were registered against they arrested On March 2 and 3.