Malkajgiri Police arrest seven in illegal loan racket; gang collected hefty interest in advance, blank signed cheques

Commissioner of Malkajgiri Police, B. Sumathi, along with the senior officers from the commissionerate with the seized items from the case.

Seven persons were arrested for allegedly cheating borrowers through an illegal lending network that promised large loans, collected exorbitant advance interest and used blank signed cheques and promissory notes to demand more money. Police have identified seven victims and are examining another 20 potential victims across the Malkajgiri Police Commissionerate limits.

The arrests were made by the Special Operations Team (SOT), L.B. Nagar Zone, on Thursday (November 5, 2026). The accused are 48-year-old Kumbam Nagamma, 45-year-old Kandela Gangamma, 36-year-old Kandela Mangamma alias Rani, and 32-year-old Adulla Anusha. Three others, 24-year-old Kandela Shiva Kumar alias Varun, 38-year-old Vagrigiri Indramma alias Y.V. Indra, and 32-year-old Gaikwada Swapna, were arrested on October 26. Four other people are absconding.

According to the Commissioner of Malkajgiri Police, B. Sumathi, the gang targeted financially distressed people, senior citizens, employees and businesspersons in urgent need of financial assistance. “The accused approached borrowers through known persons and intermediaries, promised substantial loans and deducted hefty amounts as advance interest. In several cases, only part of the promised amount was disbursed, while borrowers were asked to pay additional sums on the pretext of arranging larger loans,” explained the officer.

She added that the gang obtained promissory notes, bonds and blank signed cheques for amounts substantially higher than the loans actually advanced. Even after borrowers claimed to have repaid the money, the documents were retained and further payments were demanded. Those who questioned the transactions or sought the return of their documents were threatened with criminal cases and physical harm.

One of the victims was an elderly woman doctor who wanted to purchase an AI-based cancer-detection machine. The police said the accused collected money and several financial documents from her before forcibly taking possession of her Skoda car and Toyota Innova Hycross. A private teacher, a driver, his friend and a retired Veterinary Department employee were also subjected to similar financial exploitation and intimidation.

The police seized the two cars, along with nine mobile phones and three additional smartphones. They also recovered 25 promissory notes, 22 blank cheques, two Telangana pattadar passbooks and two sale deeds. Cash of ₹33,010 was recovered from Nagamma and ₹14,680 from Gangamma.

The cases were registered at L.B. Nagar, Neredmet and Keesara police stations. Investigators are tracing the financial transactions and examining the roles of those involved. The police said they would seek custody of the arrested persons for further questioning and consider invoking the Preventive Detention Act wherever legally warranted.