Police in Kolkata have busted a loan fraud racket operating out of the Purba Jadavpur area, arresting five persons accused of cheating people by promising loans under the Pradhan Mantri MUDRA Yojana (PMMY).
The arrests were made during a raid at a residential building in the area, a senior police officer said on Saturday. The accused allegedly targeted small business owners by falsely assuring them of loans under the central government scheme.
“The accused were apprehended from a residential complex. The arrested persons have been identified as Amit Khan, Rathin CD, Mohammad Nazimuddin Siddiqui, Vishal Sindhe, and Madhusudan HR. Among them, Rathin, Nazimuddin, Vishal, and Madhusudan are residents of Karnataka, while Amit Khan hails from Bihar. All five were staying in the Purba Jadavpur area,” the officer said.
According to police, the five were arrested from a third-floor room of a residential building in Nitainagar. Eight smartphones and six keypad mobile phones were recovered from their possession.
The accused are scheduled to be produced before a local court on Saturday. The case came to light on January 7, when a complaint was lodged at the Purba Jadavpur Police Station alleging the existence of a loan fraud racket.
Investigators said some suspects were arrested earlier, and information gathered during their interrogation led police to the remaining accused.
Investigators said the group allegedly contacted small business owners, promising them loans under the Pradhan Mantri MUDRA Yojana in exchange for fees or personal details, before cheating them.
Police have registered the case under various sections of the Information Technology Act and the Bharatiya Nyaya Sanhita (BNS). Further investigation is underway to trace other persons linked to the racket and to determine the scale of the fraud.
The Pradhan Mantri MUDRA Yojana (PMMY) provides loans of up to Rs 20 lakh to eligible entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category, aimed at supporting non-corporate, non-farm small and micro enterprises.
