Gajuwaka police near here today arrested a private money-lender for alleged involvement in 'call-money racket'.
A team led by inspector M Appa Rao arrested Gogineni Sudhakar for cheating, criminal intimidation and other relevant offences.
DCP Dr G Ram Gopal Naik said Sudhakar extended loans to needy persons at a very high interest rate after obtaining promissory notes and blank cheques from them.
In some cases he allegedly demanded sexual favours from the borrowers' wives for returning the promissory notes and cheques.