Bhubaneswar, June 11 -- A major illegal money-lending operation was unearthed in Odisha's Gajapati district, with police arresting on Thursday a man accused of running a high-interest loan racket by accepting motorcycles and mobile phones as collateral from borrowers.

The accused has been identified as K. Ravi Reddy of the Adaba area in Gajapati district.

According to the police sources, K. Ravi Reddy had allegedly been engaged in unauthorised lending activities for several years, offering loans to people in exchange for pledged motorcycles and mobile phones.

Police claim that Ravi Reddy charged an interest rate of Rs 10 for every Rs 100 borrowed, amounting to a steep 10 percent interest rate. The alleged business attracted borrowers f...