Vizianagaram: The Vizianagaram police busted a car rental racket and arrested two members of a gang involved in cheating people on the pretext of earning income through car rental. The police recovered 29 cars worth over Rs 2 crore from the gang.
The police said that two of the three members were arrested. The arrested persons have been identified as M. Chandramouli, a native of Parvathipuram in Vizianagaram district and L. Siva Ramakrishna, a resident of Seethampeta in Srikakulam district. The cops launched a manhunt for an absconding gang member S. Ravi, a native of Bobbili town in Vizianagaram district.
The gang used to identify car owners in need of money and offer them a monthly income of a minimum Rs 25,000 as rent on their car. Worried over the EMIs and vehicle maintenance, some of them fell for the offer.
Vizianagaram superintendent of police B. Raja Kumari said that one P. Rajesh of Srikakulam district filed a complaint on 29 May, stating that Chandramouli had promised him a monthly income of Rs 29,000 for rent on his car. An agreement was signed and Chandramouli and Siva Ramakrishna began to use his car. Later, the duo neither gave him money nor returned his car. Rajesh came to know that they had mortgaged the car.
Based on Rajesh's complaint, the Parvathipuram police investigated the case and nabbed Chandramouli. The investigation revealed that Chandramouli along with two others used to hire cars in Vizianagaram, Vizag and Srikakulam districts by paying a small advance and never returned them. He used to extend the hire period. Upon interrogation, Chandramouli said they so far mortgaged 29 rented cars to various persons by taking loans of Rs 2 lakh to Rs 2.5 lakh. The gang pledged the rented cars for easy money to meet their vices and other expenses, Raja Kumari added.
The owners of the cars from Parvathipuram, Battili, Seethampeta, Cheedikada and Vizag claimed 23 cars seized from the gang. The police the remaining six cars are yet to be claimed.