Police in Kolkata have busted a loan fraud racket operating out of the Purba Jadavpur area, arresting five persons accused of cheating people by promising loans under the Pradhan Mantri MUDRA Yojana (PMMY). The arrests were made during a raid at a residential building in the area, a senior police officer said on Saturday. The accused allegedly targeted small business owners by falsely assuring them of loans under the central government scheme. Investigators said the group allegedly contacted small business owners, promising them loans under the Pradhan Mantri MUDRA Yojana in exchange for fees or personal details, before cheating them. The Pradhan Mantri MUDRA Yojana (PMMY) provides loans of up to Rs 20 lakh to eligible entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category, aimed at supporting non-corporate, non-farm small and micro enterprises.

Source: The Telegraph January 10, 2026 08:24 UTC