Police on Saturday arrested six people operating ‘Meter Baddi’.
‘Meter Baddi’ is a colloquial term for loans offered mostly by goons for exorbitant interests. The moneylenders' levy interest on the principal amount on an hourly basis. The rate of interest is so high that the borrower would never be able to pay back the interest, a senior police officer said.
On a tip-off, the city police formed a special team and raided many such lenders in the north division. Raids were on in Subramanyapura, Mahalakshmi Layout, Magadi Road, Rajaji Nagar, Soladevanahalli, Bagalagunte, Jalahalli, Peenya and RT Nagar.
The police recovered Rs 13.16 lakh in cash, several property documents, vehicles and 145-odd blank cheque leaves from the accused. The accused have been charged under various sections of the Karnataka Prohibition of Charging of Exorbitant Interest Act and The Prize Chits and Money Circulation Scheme (Banning) Act, 1978.