HYDERABAD: Two persons involved in running a moneylending business without proper licences were arrested here on Thursday. According to police, the two financiers were charging higher interest from auto drivers, extorting money and cheating them by keeping original documents of vehicles and blank cheques. They also used to collect bigger amounts from auto drivers and give receipts for small amounts. The arrested are Surender Kumar Jain and Praveen Kumar Jain, both residents of Siddhartha Shanti Niketan in Lingampalli.
On February 4, an auto driver Nawab Ali, a resident of Falaknuma lodged a complaint against the duo alleging that the financiers were harassing him. Acting on the complaint, police raided their office at Hyderguda on Thursday and arrested them. "They confessed to doing auto finance as well as moneylending without valid licecse. They also provide loan to persons at high interest rates,'' said Ch Hussain, assistant commissioner of police, Falaknuma.
Police seized 82 registration certificates, 63 original permits, 70 hire purchase agreements, 56 blank cheques, 180 payment schedule sheets, 10 ledger books, 12 money receipt books and Rs32,000 in cash.