Crackdown on Illegal Financiers -49 arrested
Peddapalli/Mancherial: In a major crackdown conducted by Ramagundam Police on Monday 49 illegal financiers were arrested. These financiers were operating on a large scale at exorbitant interest rates and taking documents, blank signed non-judicial stamp papers, cheques among others as collateral security mostly from farmers, petty vendors, small traders among others.
A case has been registered against them under IPC section 420 (Cheating) and relevant sections of Telangana Money Lending Act, he said.
Ramagundum Police Commissioner V Satyanarayana said that around Rs 65 lakh in cash 1,235 promissory notes, 1,019 blank Cheques, 347 ATM cards, 175 bond papers, 23 land papers, and several passbooks were seized from the offenders possessions Around 70 illegal financiers are currently on the run and the police has launched a massive search to arrest them.
" We have formed 60 teams and begun the drive against all the illegal financiers in Mancherial, Godavarikani, and Ramagundam. For every Rs 100 (they lend), they are collecting between Rs 5 to Rs 10 as interest. They are not registered, financiers. Without following rules, they have been taking properties on the mortgage. In some cases, they give Rs 800 in the morning and collect Rs 1000 by evening. There is nothing on record in these cases. The financiers avoid income tax and other tax payments Vehicle and gold tax loans are also given by such financiers, said Satyanarayana.
The police commissioner said that the financiers would employ local henchmen to recover the money by way of intimidation. He said that the police will also take stringent action against such gangs. If they repeat offender, we will invoke the PD i.e the Preventive Detention Act, the commissioner said.
The commissioner said that the police will probe further into the case. " it is not a crime to lend or borrow money. But they are the guideline issued by the RBI to be followed.
The financiers have to be officially registered.
They should have a PAN card and apply for a money lending license.
These transactions should be done through banks only. The public should not be cheated by this kind of financiers, the commissioner said.