Money lending racket busted, 1 held

BANGALORE: The Organized Crime Wing of the Central Crime Branch (CCB) busted a racket where a local corporator is allegedly involved in running illegal money lending business with extortion money as capital investment from a notorious rowdy.

The racket was busted when the CCB team nabbed a rowdy, Majestic Seena, for collecting extortion money from videogame parlours, bars, restaurants and businessmen on behalf of another rowdy, Sunil alias Silent Sunil.

Silent Sunil has a dozen cases pending against him and is currently cooling his heels in central prison.

His men who are out on bail are carrying out the extortion business in and around the city.

The money collected from extortion was handed over to BBMP corporator of Lakkasandra Ward Mahesh alias Penga Mahesh, who is an associate of Sunil, CCB police said.

ACP S Y Hadimani said Penga Mahesh was involved in a murder case at Wilson Garden in 2004 and was acquitted in the case.

Penga Mahesh reportedly lent money to hawkers and petty businessmen on high rates, which is called "Meter Baddi". The interest is charged on daily basis or even hourly basis, depending on the amount.

Based on Majestic Seena's information, the police seized `5 lakh from BBMP Corporator Mahesh' house, said Krishnam Raju, the DCP (Crime).

Preliminary investigations revealed that Mahesh was carrying out his business in KR Market and Majestic areas targeting hackers and petty businessmen.

They were given `80 and at the end of the day collected `100.

Police said Mahesh had invested several lakhs in the market and had a fullfledged team of recovery agents to get the money.

"This is the first time we have managed to establish local politician and rowdy links with proof and we are investigating further to collect more information in this regard," said Krisnam Raju.

The police are yet to initiate action against Mahesh as he could be booked under money laundering.