12 cases have been registered by Hyderabad Police under Telangana State Money Lending Act in a special drive launched by the South Zone Police against the illegal financers and money lenders, especially in the Old City. There were several reports being revealed regularly on the tortures and extortions faced by the poor by the illegal micro financers in the city.
It has been reported that the private lenders operating illegally use to collect interest up to 40 per cent from the street vendors, auto drivers, push cart riders and poor women and others.
80 illegal financers have been arrested in the city in the special raids made after Mohammed Javeed, a printer from Chatta Bazar was brutally murdered by a private financer. The local people report that the business of illegal finance is operational in several parts of the city from decades and the micro financers have been enjoying support of the political parties.