Millennium Post

Call money racket: Two finance company promoters detained

Promoters of two private finance companies were on Thursday picked up in connection with the infamous call money racket, police said.

The Visakhpatnam police also seized some cash and related documents during raids at their respective offices. According to R Mallikarjuna Rao, Inspector of City Task Force (CTF), raids were conducted on Sri Venkata Sai Finance and Chandra Finance on allegations of operating the racket.While, police seized Rs 1.95 lakh cash, 122 blank promissory notes, 22 blank cheques and 160 loan books from Chandra Finance, Rs 8,600 cash, 30 blank promissory notes, 55 empty promissory notes and ledger book were seized from the other finance company.

The two promoters are being interrogated, the CTF inspector said.

‘Call money’ refers to a mode of private lending where loan is made available instantly at borrower’s doorstep but at exorbitant rates, and the lender can demand repayment anytime over a call. On Wednesday, the Andhra Pradesh cabinet decided to appoint a judicial commission to probe the illegal private lending in the state.
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