Fake ‘Mudra Loan’ online fraud: Five arrested after Hyderabad woman cheated of Rs 1.08 lakh

Hyderabad: The Cyber Crime Police have arrested five key accused involved in a large-scale online fraud loan racket that cheated innocent borrowers through fake loan websites and social media advertisements.

One of the victims of the gang is a Hyderabad resident who was duped of over Rs 1 lakh after responding to a loan advertisement on Instagram.

The arrested accused have been identified as Bochu Arun, Gadam Bharath, Samarlla Thirupathi, Velpugonda Tharun and Chukka Shyam, all natives of Warangal district in Telangana.

Pretended to be loan agents

Police said the group impersonated officials of ‘Mudra Loan Services’ and other loan agencies to dupe victims on the pretext of sanctioning loans without processing fees.

Police seized the following from the accused: mobile phones (8), SIM cards (10). The case was detected by a special team led by Inspector P Shiva Chandra of the Cyber Crime Police.

Hyderabad woman cheated out of Rs 1.08 lakh through loan ad on Instagram

The case came to light after a 36-year-old woman from Hyderabad lodged a complaint stating that she had been cheated of Rs 1,08,274.

According to police, the victim came across a loan advertisement on Instagram on November 6, 2025. The following day, she received a call from a person claiming to be an official from Mudra Loan Services, who informed her that a loan of Rs 3 lakh had been sanctioned in her name.

The caller assured her that no processing fee was required, but later demanded Rs 7,200 as insurance charges and Rs 15,000 towards TDS. Over time, the fraudsters continued to demand additional payments under various pretexts, including cancellation charges. Despite paying Rs 1.08 lakh in total, the promised loan was never disbursed.

Based on the complaint, a case was registered in Crime No. 2220/2025 under Sections 66C and 66D of the IT Act and relevant sections of the Bharatiya Nyaya Sanhita (BNS).

Fake ads, call centres and commissions

Police investigations revealed that the accused were part of an organised interstate fraud network operating fake loan schemes in the names of Mudra Loan and Dhani Loan.

The gang created fake websites and posted advertisements on Facebook and other social media platforms.

Interested applicants who responded to the ads had their data segregated state-wise.

The arrested accused handled calls relating to Telangana and Andhra Pradesh victims.

Scammers made 180–200 calls per day

They contacted victims, promised loan sanctions without interest or upfront charges, and later extracted money citing processing fees, TDS, insurance and income tax charges.

The accused reportedly travelled to Kolkata and Delhi, where they were trained in operating fake call centres. They were provided with mobile phones, SIM cards, bank accounts and UPI IDs to collect money from victims.

Police said each accused made around 180–200 calls during their stay and received nearly 30 per cent commission from the illegal collections.

Background of the accused

Investigators stated that the accused are from small villages in the erstwhile Warangal district and had discontinued their education.

In 2023, while searching for jobs online, they came across advertisements related to Mudra and Dhani loans and were lured into joining the illegal network despite knowing its fraudulent nature.

Several other accused, including key organisers based in West Bengal and Delhi, are absconding. Efforts are underway to trace the money trail, freeze additional bank accounts and apprehend the remaining suspects.

Public advisory

Police have issued a strong advisory to the public:

- Do not trust social media advertisements promising instant or guaranteed loans.

- Borrow only from RBI-registered banks or NBFCs.

- Government schemes such as Mudra loans are not promoted through WhatsApp messages or unknown links.

- Never transfer money to unknown persons via UPI, wallets or bank transfers.

- Victims of cyber fraud can dial 1930 immediately or report complaints at cybercrime.gov.in.

Deputy Commissioner of Police V Aravind Babu urged citizens to remain vigilant and verify loan offers through official banking channels before sharing personal documents or transferring money.