Bhubaneswar, June 11 -- Police in Odisha's Gajapati district have busted a major loan fraud racket and arrested its alleged kingpin, seizing 137 motorcycles, 127 mobile phones, Rs.3.61 lakh in cash and a large number of incriminating documents, an official said on Thursday.
The accused, identified as K. Ravindra Reddy, was arrested by police following an investigation into allegations that he cheated people by promising loans against collateral such as motorcycles, mobile phones, gold ornaments and other valuables.
According to police, the racket came to light after a victim lodged a complaint alleging that he had obtained a loan of Rs.20,000 from Reddy around six months ago by depositing his motorcycle and related documents. The accused ...