Loan recovery agents dial AP Agriculture Minister Kakani for loan repayment, arrested

Loan-offering apps require access to the contacts of the applicant. In case the s/he defaults, the recovery agents get in touch with the alternative contacts and others in the loanee’s contact list.
Agriculture Minister Kakani Goverdhan Reddy (File Photo)
Agriculture Minister Kakani Goverdhan Reddy (File Photo)

NELLORE: Four loan recovery agents of a Chennai-based firm were arrested for allegedly threatening Agriculture Minister Kakani Govardhan Reddy’s personal assistant Cherukuri Sankaraiah, seeking the repayment of a loan a Nellore resident had availed through a mobile app.

According to Superintendent of Police Ch Vijaya Rao, P Ashok Kumar of Nellore city had availed a loan of Rs 8.50 lakh. After he failed to clear the debt, loan recovery agency rang up the people on his contact list. The loan-offering apps require access to the contacts of the applicant. In case the s/he defaults, the recovery agents get in touch with the alternative contacts and others in the loanee’s contact list to recover the debt. In Ashok’s case, the recovery agents rang up the agriculture minister, as he was the alternative contact on his loan application.

When the minister’s personal assistant Sankaraiah attended the call, he was asked to pay Rs 25,000. The agents continued calling him and harassed him to clear the loan. Vexed, Sankaraiah lodged a complaint with Muthukuru Police. “A police team from Krishnapatnam circle arrested the loan recovery agents in Chennai and seized laptops, four mobile phones and Rs 10,000 from their possession,” the SP said.

The accused were identified as Pesala Penchala Rao (38) from Nellore city, Mamdipudi Guru Prasad Reddy (36) from Tirupati district, and Madhuri Vasu (25) team leader of Collman Services and Sivanasan Mahendran (42), both from Chennai.On Sankariah’s complaint, Muthukur police registered a case under IPC Sections 386 (extortion), 507 (criminal intimidation) read with 109 (punishment of abetment) and Section 66 of IT Act, 2000.

Minister Kakani said he had received at least 79 calls from different numbers over a brief period. “Usually, I attend every call receive. I was busy with the official programmes, so my personal assistant attended the calls. The loan recovery agents informed him that Ashok had given my number as his alternative contact. So, they asked us to pay the loan installment of Rs 25,000. On the instructions of police, Sankaraiah paid Rs 25,000 to the company. Meanwhile, police personnel laid a trap to arrest the gang and found that the Chennai-based company was operating with 300 telecallers,” he explained.

Several MLAs from the combined Nellore district have also complained of harassment by loan recovery agents, he added. “I was surprised when police told me that 10 senior advocates from Chennai arrived to arrange bail for the accused,” Kakani said, adding that he has directed top police officers to take strict action against the recovery agents.

Further, the SP appealed to the public to inform local police, if they face any such harassment from loan recovery agents. Stern action would be initiated against such people, he assured. Meanwhile, a woman from a loan recovery agency called up former minister P Anil Kumar to pay a loan instalment as one of his ‘friends’ had failed to clear the debt. The audio clip of the conversation went viral on social media. He warned the agent against calling him again.

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