A key accused in a series of Mudra loan fraud cases, who had evaded arrest for more than four years, was finally apprehended by the Hyderabad police on Monday. The man, identified as M. Mahesh, 42, allegedly orchestrated a wide-ranging scam involving fake documents to secure loans under the Pradhan Mantri Mudra Yojana (PMMY), a flagship scheme aimed at empowering small businesses.
Mahesh had been on the run since 2020, following multiple complaints from banks and whistleblowers. The police said he was the linchpin of a fraud ring that submitted forged income certificates, fake business licenses, and manipulated Aadhaar and PAN details to secure over INR 4 crore in loans across Telangana and Andhra Pradesh.
The arrest was made by the Commissioner’s Task Force (South Zone), who tracked Mahesh to a rented house in Rajendranagar after receiving a tip-off. Officers said he had been moving frequently, changing identities and SIM cards to avoid digital tracking.
A Web of Forged Dreams
Initial investigations reveal that Mahesh worked with a group of agents who lured unemployed youth and daily-wage workers with promises of easy loans and commissions. Their identities were misused to submit fraudulent Mudra loan applications, which were quickly sanctioned due to the scheme’s relaxed verification protocols.
“Several victims were unaware that loans had been sanctioned in their names until banks began recovery proceedings,” said DCP South Zone Sunpreet Singh. “Mahesh exploited loopholes in the Mudra loan application system and bank due diligence processes.”
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Multiple FIRs and Pending Cases
Police confirmed that at least 18 FIRs are pending against Mahesh across Hyderabad, Ranga Reddy, Nalgonda, and parts of Andhra Pradesh. His arrest could lead to more names being unearthed in what officials are calling a “systematic exploitation of a national scheme.”
Mahesh has been remanded to judicial custody, and police are now seeking bank officials who may have been complicit or negligent in the loan sanction process.
The Mudra scheme, launched to boost micro-entrepreneurship, has faced increasing scrutiny in recent years due to rising fraud cases across India. This arrest adds to growing concerns about loan disbursal practices and highlights the urgent need for robust verification mechanisms.