Call money racket: 2 finance company promoters detained

Promoters of two private finance companies were today picked up here in connection with the infamous call money racket, police said.
The Visakhpatnam police also seized some cash and related documents during raids at their respective offices here.
According to R Mallikarjuna Rao, Inspector of City Task Force, raids were conducted on Sri Venkata Sai Finance and Chandra Finance on allegations of operating the racket.
While, police seized Rs 1.95 lakh cash, 122 blank promissory notes, 22 blank cheques and 160 loan books from Chandra Finance, Rs 8,600 cash, 30 blank promissory notes, 55 empty promissory notes and ledger book were seized from the other finance company.

The two promoters are being interrogated, the CTF inspector said.
'Call money' refers to a mode of private lending where loan is made available instantly at borrower's doorstep but at exorbitant rates, and the lender can demand repayment anytime over a call.

Yesterday, the Andhra Pradesh cabinet decided to appoint a judicial commission to probe the illegal private lending in the state which is in news due to the infamous racket, and the alleged sexual exploitation of women borrowers in some cases. The commission would be headed by a retired High Court judge.
In a related development, Vijayawada Police Commissioner D Goutam Sawang too cancelled his leave in view of the ongoing investigations in the case.

The pressure on the Chandrababu Naidu government to act against such private lenders, who sometimes usurp the mortgaged assets of borrowers, is increasing as some operators, allegedly involved in the racket are said to be politically connected.
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In East Godavari district, 33 persons have been arrested so far in connection with the call money scandal and majority of them are politically connected.
"Out of 33 arrested persons, 25 belong to YSRCP and 3 to TDP," said district SP M Raviprakash.
He also appealed to victims of the racketeers to come forward and lodge complaint with police.
The officer said that raids and searches by police are on even as call money-related cases are being reported from Anaparthy, Ramachandrapuram, Amalapuram, Kothapeta, Ravulapalem, G Mamidalla and Pithapuram in the district.

He said at least two complainants, including a woman principal, had alleged that their creditors are harassing them despite repayment of loan and have taken over property of one of the complainants.