Loan racket busted in Vijayawada exposes prostitution and political nexus
The police busted a loan racket in Vijayawada that was found to be linked with prostitution, large sums of money changing hands, and many government and police officials. The gang allegedly gave loans to innocent women at high interest rates and threatened them when they were unable to repay. Some local political party leaders are also said to be involved in the racket. The task force that made the arrests found that the gang had a turnover of Rs 600 crore per year.
According to The Indian Express, the arrests were made after a woman complained to the police that her daughter and son-in-law had been 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. The gang's modus operandi was to give loans to innocent women at very high interest rates, and when they were unable to repay on time, they threatened them and coerced them into handing over their houses or lands in lieu of the loan. There were allegations that in some instances, they forced women into flesh trade to earn the money to repay the loans. All this is under investigation.
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