Nalgonda, Telangana: The Nalgonda police have arrested a man for allegedly defrauding people of Rs. 50 crore by offering high-interest loans. The accused, identified as Ramavat Balaji, a resident of Vaddipetla village in Paipalli mandal, was apprehended following complaints from victims. Authorities seized two luxury cars, seven mobile phones, promissory notes, and property documents from him.
Police investigations revealed that in 2020, Balaji told his relatives he intended to start an ice cream parlor business and borrowed Rs. 5 lakh at interest. After facing losses in the business, he shifted to real estate, borrowing Rs. 15 lakh from villagers at 6% interest and gradually repaying interest to gain trust. He later recruited agents and extended high-interest loans to nearby tribal hamlets. Using the funds, he acquired houses, agricultural land, cars, and bikes in the names of relatives and friends, maintaining a lavish lifestyle.
Balaji allegedly promised returns higher than bank rates, attracting more investors who lent him large sums. However, in recent months, he stopped repaying both principal and interest. When victims sought repayment, he fled. Police have now arrested him and are conducting further investigations into the case.