CCB raids finance firm

It is alleged that the company, ‘Best Finance Corporation Limited’ lent money at exorbitant rates of interest and had undertaken transaction in excess of Rs 1.5 crore.

The financiers, K A Baby (46) from Thindlu, Babu alias Ramesh (48) from Vyalikaval, Chandrashekar alias Chandru (40) from Hebbal were arrested on Thursday for operating the finance company without any approval. Police said the moneylenders would first attract customers by providing loans for small businesses and also personal loans at monthly interest rates of 10 to 15 per cent. They would later threaten customers, who default on repayments, with dire consequences and force them to pledge their meagre possessions.

The police have recovered 50 documents signed by various customers including signed blank cheques, demand promissory notes, blank stamp papers and vehicle ownership papers. They have also seized two bikes and Rs three lakh in cash. A case has been registered at the Vyalikaval police station.