Massive ’Call Money’ Scam Takes Andhra Pradesh By Storm, 80 Arrested

Mangalore Today News Network

Hyderabad, Dec 17, 2015:  A huge blackmail, extortion and sex racket has been exposed in Andhra Pradesh. Operating in multiple districts, allegedly involving politicians, businessmen and moneylenders, it has become infamous as the call money sex racket.

Call money is a loan that is literally a phone call away, with the money being delivered at the doorstep. The flipside is that the lender can demand it back at any time and if the borrower cannot repay, the lender can take away several movable and immovable property, says the police. Several cases of women being coerced into sexual exploitation have also emerged.

The rates of interest charged are very high, estimated to be from 120 per cent to 200 per cent. Against the loan given, promissory notes and blank cheques are taken.

The racket came to light after a woman in Vijayawada complained to the police that she was forced to give Rs. 6 lakh in return for borrowing Rs. 1.5 lakh. Once the investigation began, the police realised the dark underbelly of threats, coercion, extortion, sexual exploitation and even prostitution rackets operating, riding on the money-lending business.

Kanakaraju, who runs a small eatery in Kaleswar Market, says he borrowed Rs. 50,000 and had been paying Rs. 500 every day for five years. Yet the lender did not return the documents and promissory note.

"Names of several ruling party MLAs, MPs, ministers and other influential TDP leaders has come up in this shameful scam. Yet the chief minister has not taken any action," alleged YSR Congress president Jaganmohan Reddy, who submitted a memorandum to the governor on the issue.

Andhra Pradesh Director General of Police JV Ramudu said there was no question of sparing anyone, irrespective of political affiliation. "We have arrested some 80 people and they are people across the political spectrum," he explained.

Top sources told NDTV that in Anaparthy in East Godavari district for instance, they have taken into custody one Nallmella Veera Venkata Sairam Reddy, and recovered from him 500 promissory notes. The accused is said to have close links with the YSR Congress.

Chief Minister Chandrababu Naidu has said tough action will be taken against all criminal elements involved and has asked district police to invoke Nirbhaya Act in case there is an instance of sexual exploitation.

 

Courtesy: NDTV