Hyderabad, Sep 7 (IANS): Police have busted an inter-state loan racket with the arrest of members of a Delhi-based gang, which cheated people across the country to the tune of Rs.10 crore by promising loans on cheaper interest rate.

Cyber crime wing arrested Mahipal Singh Yadav, the kingpin and managing director of My Invest Guruji Services Pvt Ltd, Vimal Arora and Shantanu Kumar. Two other accused - Sandeep Juneka and Rakesh Sharma - are absconding.

Police conducted probe against three other companies - Value Added Cards Pvt. Ltd, Value Finvest Finance Pvt. Ltd. and S.S. Kripa Enterprises.

Hyderabad Police Commissioner M. Mahender Reddy said the gang cheated 522 people in different states - 118 victims from Andhra Pradesh and Telangana, 257 from Karnataka, 75 from Maharashtra, 31 from West Bengal and 41 from other states.

Police froze seven bank accounts of the accused with a total amount of Rs.1.51 crore.

Syed Qutubuddin of Hyderabad had lodged a complaint with the police on Aug 28 that he was lured by a telecaller to avail a loan facility at a cheaper rate. Accordingly he had submitted a loan proposal to Yogesh Jindal at the document collection centre of Value Finvest Finance Pvt. Ltd., Noida.

The company lured him to pay about Rs.5.8 lakh on various pretexts for sanction of a loan of Rs.20 lakh. Later, his efforts to contact company representatives failed.

Yadav, who earlier worked in various call centres, started his own firm My Invest Guruji Services in 2013 along with Rakesh Sharma as a director. The company had seven team leaders with 35 to 40 tele callers.

He conspired with Juneja of Value Added Card Pvt. Ltd. and others to cheat people on the pretext of providing loans on low rate of interest without any security or conditions.