Three money lenders B Nageshwara Rao, S Nagaeshwara Rao and l Sateesh were arrested on Tuesday and `7 lakh in cash after a scandal of “loan sharks” pushing the defaulting poor women into flesh trade has rocked Andhra Pradesh sending waves of anger and dismay across the State.
Promissory notes and 70 cheque books were seized from them and the arrested were booked under section section 120 (criminal conspiracy), 420 (cheating) 376 (rape)354 sexual harassment) 384 (extortion) and 120 B (defamation) under Indian Penal Code.
Facing a public outcry and strong attack from the Opposition, the State Government has ordered police to crack down on loan mafia. Amid the State-wide raids to curb what is being called “Call Money” or “Online loan”, the State police chief JV Ramudu declared that the police will take stringent action against the guilty and no mercy will be shown.
Though State Chief Minister N Chandrababu Naidu has made a public appeal urging all the victims of the “Call Money scandal” to come out, lodge complaint with the police and refuse to pay any money, a new controversy has erupted as Vijayawada city police commissioner Guatam Sawang has gone on leave.
Though Director General of Police Ramudu insisted that Sawang’s leave had nothing to do with the scandal as his month long leave was sanctioned a month back, the Opposition YSR Congress has alleged that Sawang was forced to go on leave as he was instrumental in exposing the loan mafia.
As Vijaywada, the makeshift State capital was found to be the base of the mafia, the police conducted raids and searches of the money lenders in many areas of the city including Gannavaram.
The modus operandi of Call Money was such that the people had to either pay 120% to 200% interest on the loan borrowed or lose their property, vehicles and jewelry.
The system came to be known as Call Money as people can make a call to the money lenders and they will come home to give the loan.
In some case the women who were unable to pay the interest or the loan, were forced in to flesh trade.