Illegal loan racket busted in Malkajgiri, seven accused arrested

According to a report by The Hindu, the police have busted an illegal loan racket operating within the Malkajgiri Police Commissionerate limits that was defrauding people in financial distress, leading to the arrest of seven individuals. The gang would deduct exorbitant interest in advance under the guise of providing loans and illegally hold signed blank cheques and promissory notes to demand more money. The police have identified seven victims so far in this case and are investigating twenty other potential victims within the Malkajgiri Police Commissionerate limits.

The arrests were made by the Special Operation Team (SOT) of the L.B. Nagar zone on Thursday, November 5, 2026. The accused arrested in this case have been identified as Chumbal Nagamma (48), Kandela Gangamma (45), Kandela Mangamma alias Rani (36), and Adulla Anusha (32). Additionally, three other accused were arrested on October 26, including Kandela Shiva Kumar alias Varun (24), Vagrigiri Indramma alias Y.V. Indra (38), and Gayakwada Swapna (32). Four others involved in this racket are still absconding, and the police are searching for them.

According to Malkajgiri Police Commissioner B. Sumathi, this gang specifically targeted citizens facing financial difficulties, senior citizens, employees, and business people who needed immediate financial assistance. The accused would contact people looking for loans through acquaintances and middlemen, promise large loans, and deduct a heavy amount as interest in advance. In many cases, only a portion of the promised amount was given, while demands for additional payments were made under the pretext of arranging larger loans.

The Commissioner further stated that the gang would obtain promissory notes, bonds, and signed blank cheques for amounts much higher than the actual loans provided. Even after the victims claimed to have repaid the loan amount, these documents were not returned, and demands for more money continued. Those who questioned these transactions or asked for their documents back were threatened with criminal cases and physical harm.

Among the victims of this racket was an elderly female doctor who wanted to purchase an AI-based machine for cancer diagnosis. The police stated that after obtaining money and several financial documents from her, the accused also forcibly seized her Skoda car and Toyota Innova Hycross car. Additionally, a private school teacher, a driver, his friend, and a retired employee of the Animal Husbandry Department also fell victim to similar financial exploitation and intimidation.

During this operation, the police seized two cars, nine mobile phones, and three other smartphones. Along with this, twenty-five promissory notes, twenty-two blank cheques, two Telangana Pattadar passbooks, and two sale documents were also recovered. Cash amounting to ₹33,010 was found with the accused Nagamma and ₹14,680 with Gangamma.

Cases have been registered in this matter at the L.B. Nagar, Neredmet, and Keesara police stations. Investigators are tracing the links of the financial transactions and are also examining the roles of others involved. The police stated that they will seek remand of the arrested accused for further interrogation and will also consider invoking the Preventive Detention Act as per legal provisions.