Loan scam rocks Andhra House

Suresh Dharur

Tribune News Service

Hyderabad, December 17

Two members of the YSR Congress were today suspended from the Andhra Pradesh Assembly for two days after the Opposition party stalled the House proceedings on the issue of “call money” racket.

Speaker K Sivaprasad Rao suspended B Sivaprasad Reddy and D Ramalingeswara Rao for obstructing the cameras meant for showing the House proceedings.

Chief Minister N Chandrababu Naidu’s assurance that his government was committed to taking strict action against those involved in the racket, irrespective of party affiliations, failed to pacify the main opposition party on the opening day of the winter session.

A multi-crore “loan scam”, allegedly involving instances of sexual exploitation of borrowers, has shocked the political circles in Andhra Pradesh, prompting the state government to order a judicial probe into the murky deals.

Dubbed as “call money”, the racket allegedly involves a well-oiled network of private money lenders with political connections, officials and the local police. "The modus operandi of the gangs is to give loans to women at very high interest rates and when they are unable to repay on time, they threaten them and coerce them into handing over their houses or lands in lieu of the loan. There are allegations that in some instances they forced some women into flesh trade to earn money to repay the loans. All this is under investigation," Vijayawada Police Commissioner Gautam Sawang said.

Some local political leaders are also allegedly involved in the scam. A special task force constituted to unearth the scam has so far arrested more than 140 people, including supporters of the ruling Telugu Desam Party, the opposition YSR Congress, Congress and the CPI.

According to unofficial estimates, the private money lending business in Krishna, Guntur, East Godavari, West Godavari, Chittoor and other districts runs into Rs 600 crore per year.

The racket came to light with the police arresting Y Ramachandra Murthy, a deputy engineer of AP Transmission Corporation and G Satyanand, who are alleged to be the brains behind the operation, along with a few private financiers.

The arrests followed a complaint by a woman victim in Vijayawada who alleged that her daughter and son-in-law were abducted by a financier after they failed to repay a loan of Rs 3 lakh, which they had taken at an interest rate of 30 per cent.

As more and more women came forward and filed complaints, an embarrassed government ordered a judicial inquiry by a retired high court judge into the scam. Some women alleged that the gangsters had posted their photographs on social media sites, besides blackmailing and forcing them into flesh trade.

“We will not spare anybody. We will take stern action and will not hesitate even to slap the new Criminal Amendment Act (Nirbhaya) against the offenders, who are involved in sexually assaulting women,” state Director General of Police JV Ramudu said.

Andhra Home Minister Chinnarajappa said there was no political pressure in the case. “We have directed the police to conduct a fair and thorough probe into the scandal and arrest all accused in the case,” he said.

At present, cases have been registered under IPC sections dealing with cheating, rape, sexual harassment, extortion, defamation and criminal conspiracy.