Keonjhar: Police have arrested two persons for not possessing license to lend money.

The arrested were collecting an exorbitant rate of interest. Tribal people, farmers and petty traders were their soft target.

Indrajeet Sahu, 42, and Maheswar Raula, 48, were arrested from Keonjhar township for violating the laws governing money lending, said the police, who recovered from the duo promissory notes and blank signed cheques obtained from their customers.

They were booked under section 19 (clause 1 and a) of the Money Lenders Act, 1939, and the Indian Penal Code section 420 (cheating). Later they were produced in court.#

"Acting on a tip-off, we arrested them," said sub-divisional police officer Sriharsha Mishra.

The arrested accused used to collect 5 to 10 per cent rate of interest every month from their borrowers, the police said.

Apart from blank singed cheques, the moneylenders were procuring gold ornaments and other valuables as security against the money lent to the borrowers.

By the illegal financial dealings, the fraudsters have cultivated the habit to dupe the needy.

There have been many instances of the moneylenders managing to take over the property of victims after offering those loans.

These instances have occurred in the past mostly in tribal dominated hamlets, said the police.

The drive against unauthorised money lending is being further intensified with the police already identifying over two dozen of moneylenders.