Loan racket busted; 5 arrested

The police have busted a loan racket and arrested five persons on Friday.

Police said businessman Jayachandran, 47, from Chennai approached one Mohammed Akhtar, 23, also from Chennai, for getting loan to the tune of ₹1 crore from private lenders. Promising Mr. Jayachandran of arranging for the loan, Akhtar asked him to give the facilitator’s commission of ₹1 lakh.

After Mr. Jayachandran agreed to it, Akhtar took him to Venkatesh of Agasthiyarpatti near Vickramasingapuram in the district, where they showed him several bundles of currency notes and took signatures in seven cheques and loan agreement documents.

When the police received information about this murky transaction, police raided the house of Venkatesh, where they found fake currency notes and genuine notes, all to the tune of ₹3.68 lakh.