Five arrested in Hyderabad for operating fake online loan racket

Five men were arrested by the cyber crimes wing of the Hyderabad police for running an organised online loan fraud that duped victims by impersonating officials of Mudra and other loan services through fake websites and social media advertisements.

The accused were identified as Bochu Arun, Gadam Bharath, Samarlla Thirupathi, Velpugonda Tharun and Chukka Shyam, all natives of Warangal. Police said the five along with other absconding associates cheated innocent people on the pretext of sanctioning loans without interest or upfront payments.

The arrests follow a complaint lodged by a 36-year-old woman from Hyderabad, who stated that on November 6, 2025 she came across a loan advertisement on Instagram. Although she closed it immediately, she received a call the next morning from a man identifying himself as Kila Pavan Kumar, claiming to be an official from Mudra Loan Services. He informed her that a loan of ₹3 lakh had already been sanctioned in her name and sought her Aadhaar and PAN details to process it.

Subsequently, the caller demanded ₹7,200 towards insurance charges and ₹15,000 towards TDS for disbursal of the loan. Over time, he allegedly extracted a total of ₹1,08,274 on various pretexts, including insurance and tax deductions. When the complainant sought cancellation of the loan, he demanded further payments as cancellation charges and continued to insist on additional sums, claiming they were necessary either to release the loan or refund the amount.

Based on her complaint, a case was registered under Sections 66C and 66D of the IT Act and Sections 318(4) and 319(2) of the Bharatiya Nyaya Sanhita. Investigation revealed that the accused were part of a larger organised network operating fake call centres.

Investigations revealed that the accused initially created fake websites and social media advertisements promoting trending loan schemes. Interested individuals who responded were contacted and their data segregated State-wise. The Telangana and Andhra Pradesh leads were handled by the arrested accused, who allegedly travelled to Kolkata and Delhi to operate from makeshift call centres.

Investigators found that the five men, who had discontinued their studies and previously worked as daily labourers, were recruited in 2023 after responding to online job advertisements related to Mudra and Dhani loans. They were contacted by handlers from West Bengal and informed about the operation of fake call centres. Despite knowing the illegal nature of the work, they agreed to participate due to financial difficulties.

In June 2023, an operational manager known as Krishna alias Kittu arranged their travel to West Bengal, where they were accommodated in flats in Kolkata and trained in the fraud. Using mobile phones, SIM cards, bank accounts and UPI IDs provided by the organisers, they made between 180 and 200 calls each, promising loan sanctions and collecting money under the guise of processing fees, TDS and income tax charges. They were allegedly paid a 30% commission before returning to Hyderabad. Police said the accused later continued similar activities with other associates based in Delhi.

In the present case, the accused allegedly cheated the complainant on the pretext of providing a Pradhan Mantri Mudra loan and collected ₹1,08,274 from her.

Police seized eight mobile phones and 10 SIM cards during the operation. Efforts are under way to trace the money trail, freeze additional bank accounts and apprehend the remaining absconding accused.

In a public advisory, the police cautioned citizens against falling prey to online loan advertisements promising easy or guaranteed loans. Officials stressed that government loan schemes are not promoted through unsolicited social media advertisements or WhatsApp messages and urged the public not to share personal documents or transfer money to unknown persons. Victims of cybercrime can seek immediate assistance by dialling 1930 or by visiting the national cybercrime reporting portal.