Kolkata police have apprehended five individuals for allegedly defrauding people by promising loans under the Pradhan Mantri MUDRA Yojana (PMMY). The arrests were made during a raid in the Purba Jadavpur area on Saturday, officials said.

Details of the Arrests

• The accused, residing in Purba Jadavpur, hail from Karnataka and Bihar.
• Their identities are: Amit Khan (Bihar), Rathin CD, Mohammad Nazimuddin Siddiqui, Vishal Sindhe, and Madhusudan HR (Karnataka).
• Police recovered eight smartphones and six keypad mobile phones during the raid.
• The accused are scheduled to be produced before a local court on Saturday.

Nature of the Alleged Fraud

• The individuals reportedly targeted small business owners, promising loans under the MUDRA scheme in exchange for payments or personal information.
• Investigations suggest the racket involved false assurances of financial aid, misleading entrepreneurs into believing they would receive sanctioned loans.
• The case first surfaced on January 7, when a complaint about the loan fraud was lodged at the Purba Jadavpur Police Station.

Investigation and Action

• Following initial arrests and interrogation of suspects, police traced the remaining accused.
• A coordinated raid led to their arrest from a third-floor room in a residential complex in Nitainagar.
• The case has been registered under various provisions of the Information Technology Act and the Bharatiya Nyaya Sanhita, with further investigation ongoing.
• Authorities are working to identify other individuals connected to the racket and determine the full scale of the fraud.

About the Pradhan Mantri MUDRA Yojana

• The PMMY scheme offers loans up to ₹20 lakh to entrepreneurs who have successfully availed and repaid prior loans under the ‘Tarun’ category.
• The scheme targets non-corporate, non-farm small and micro enterprises, aiming to support the growth of small businesses across India.