The Visakhpatnam police also seized some cash and related documents during raids at their respective offices.
Promoters of two private finance companies were detained today in Visakhapatnam in connection with the infamous call money racket, police said.
The Visakhpatnam police also seized some cash and related documents during raids at their respective offices.
According to R Mallikarjuna Rao, Inspector of City Task Force, raids were conducted on Sri Venkata Sai Finance and Chandra Finance on allegations of operating the racket.
While, police seized Rs 1.95 lakh cash, 122 blank promissory notes, 22 blank cheques and 160 loan books from Chandra Finance, Rs 8,600 cash, 30 blank promissory notes, 55 empty promissory notes and ledger book were seized from the other finance company.
The two promoters are being interrogated, the CTF inspector said.
'Call money' refers to a mode of private lending where loan is made available instantly at borrower's doorstep but at exorbitant rates, and the lender can demand repayment anytime over a call.
Yesterday, the Andhra Pradesh cabinet decided to appoint a judicial commission to probe the illegal private lending in the state which is in news due to the infamous racket, and the alleged sexual exploitation of women borrowers in some cases.
The commission would be headed by a retired High Court judge. In a related development, Vijayawada Police Commissioner D Goutam Sawang too cancelled his leave in view of the ongoing investigations in the case.
The pressure on the Chandrababu Naidu government to act against such private lenders, who sometimes usurp the mortgaged assets of borrowers, is increasing as some operators, allegedly involved in the racket are said to be politically connected.
So far, 80 call money operators had been arrested in the state barring in Vijayawada. Of them, 27 had links with YSR Congress, six with TDP and three with CPI; others had no political affiliation, according to Information Minister Palle Raghunadha Reddy.