From The Hindu · The Hindu Bureau · · 1m 50s
Seven arrested in illegal loan racket in Hyderabad
Police bust a gang that promised large loans, collected advance interest and used blank cheques to extort more money from desperate borrowers.
In brief
Police bust a gang that promised large loans, collected advance interest and used blank cheques to extort more money from desperate borrowers. Malkajgiri Police arrested seven people running an illegal lending network that defrauded at least seven victims by collecting advance interest and using forged documents to…
Gang promised loans, collected advance interest
Seven people were arrested by the Special Operations Team, L.B.Nagar Zone, on Thursday, November 5, 2026, for running an illegal lending network.
The accused targeted desperate borrowers
According to Malkajgiri Police Commissioner B. Sumathi, the gang targeted financially distressed people, senior citizens, employees and business persons in urgent need of financial assistance. They approached borrowers through known persons and intermediaries.
How the scheme worked
The gang obtained promissory notes, bonds and blank signed cheques for amounts substantially higher than loans actually advanced. Even after borrowers claimed to have repaid money, documents were retained and further payments were demanded.
Victims threatened with criminal cases
Those who questioned transactions or sought return of their documents were threatened with criminal cases and physical harm. Police said only part of promised amounts were disbursed while borrowers were asked to pay additional sums.
Doctor lost car and SUV to the gang
An elderly woman doctor who wanted to purchase an AI-based cancer-detection machine was one victim.The accused collected money and financial documents from her before forcibly taking possession of her Skoda car and Toyota Innova Hycross.
Police seized documents and cash
Police seized two cars, nine mobile phones and three additional smartphones.They recovered twenty-five promissory notes, twenty-two blank cheques, two Telangana pattadar passbooks and two sale deeds.
Investigation continues into more victims
Police have identified seven victims and are examining another twenty potential victims across the Malkajgiri Police Commissionerate limits. Investigators are tracing financial transactions and considering invoking the Preventive Detention Act where legally warranted.
In short
Malkajgiri Police arrested seven people running an illegal lending network that defrauded at least seven victims by collecting advance interest and using forged documents to demand additional payments.
