Malkajgiri police arrested seven from illegal loans; the gang cashed in fat interest in advance, blank signed checks

Malkajgiri Commissioner of Police B. Sumathi along with senior officers from the Commissionerate with seized items from the case. | Photo credit: By arrangement

Seven people have been arrested for allegedly defrauding borrowers through an illegal loan ring that promised large loans, charged exorbitant advance interest and used blank signed checks and drafts to demand more money. Police have identified seven victims and are probing 20 more potential victims across Malkajgiri police commissionerate limits.

The arrest was made by the Special Operations Team (SOT) in LB Nagar zone on Thursday (November 5, 2026). The accused are 48-year-old Kumbam Nagamma, 45-year-old Kandela Gangamma, 36-year-old Kandela Mangamma alias Rani and 32-year-old Adulla Anusha. Three others, 24-year-old Kandela Shiva Kumar alias Varun, 38-year-old Vagrigiri Indramma alias YV Indra and 32-year-old Gaikwada Swapna were arrested on 26 October. Four other people are on the run.

Substantial interest deducted in advance

According to Malkajgiri Commissioner of Police B. Sumathi, the gang targeted financially vulnerable people, senior citizens, employees and businessmen who were in urgent need of financial assistance. “The accused approached borrowers through known persons and intermediaries, promising them substantial loans and deducting large amounts as advance interest. In several cases, only part of the promised amount was paid, while the borrowers were asked to pay additional amounts under the pretext of arranging larger loans,” explained the police officer.

She added that the gang obtained their own promissory notes, bonds and blank signed checks for amounts significantly higher than the loans actually made. Even after the borrowers claimed to have repaid the money, the documents were kept and further payments were demanded. Those who disputed the transactions or sought the return of their documents faced criminal prosecution and physical harm.

Several casualties

One of the victims was an elderly doctor who wanted to buy an artificial intelligence-based cancer detection device. Police said the accused took money and several financial documents from her before forcibly taking possession of her Skoda car and Toyota Innova Hycross. A private teacher, a driver, his friend and a retired veterinary department employee were also subjected to similar financial exploitation and intimidation.

The police seized two cars along with nine mobile phones and three other smartphones. They also recovered 25 drafts, 22 blank cheques, two Telangana pattadar passbooks and two sale deeds. Cash of ₹33,010 was recovered from Nagamma and ₹14,680 from Gangamma.

Cases were registered at LB Nagar, Neredmet and Keesara police stations. Investigators monitor financial transactions and examine the roles of those involved. Police said they would request the remand of those arrested for further questioning and would consider applying the Preventive Detention Act whenever legally justified.

Published – 5 Nov 2026 14:19 IST