Hyderabad-based finance company allegedly defrauds multiple victims, including an NRI businessman
A Non-Resident Indian (NRI) businessman was allegedly duped of ₹5 lakh by a finance company in Hyderabad after seeking a ₹10 crore loan by mortgaging his Banjara Hills property.
The fraudulent company collected a total of ₹75 lakh in processing fees from multiple victims before shutting down its operations, reported timesofindia.indiatimes.com.
Finance Company Promises Loan, Then Disappears
Struggling to secure a loan from traditional banks, the complainant approached a finance company in AS Rao Nagar, which claimed to offer loans against property. The company’s Managing Director (MD) assured him of a ₹10 crore loan against his Road No. 12, Banjara Hills property. However, after collecting ₹5 lakh as a processing fee, the company failed to disburse the loan despite issuing sanction letters on two occasions.
Victims Lose Lakhs in Processing Fees
As the businessman continued to follow up, he discovered that the company had shut down operations, leaving several other victims in a similar situation. The fraud targeted individuals whose loan applications were rejected by banks, promising them loans at an interest rate of 9.6% per annum.
“The complainant and several others paid a total of ₹75 lakh in processing fees, but the company’s management disappeared,” said a Hyderabad police official
Legal Action Initiated Against Finance Company
Hyderabad police’s Central Crime Station (CCS) has registered a criminal case against the finance company’s management. Reports suggest that even employees of the company were unpaid for two months before operations ceased.
Authorities have booked the Managing Director on charges of cheating, as investigations continue to track down those responsible for the scam.
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