The Andhra Pradesh government on Wednesday ordered a judicial enquiry into the call money racket even as the opposition came down heavily on the ruling Telugu Desam Party (TDP).
Speaking to the media, finance minister Yanamala Ramakrishnudu said that the government was taking the 'unethical' practice of call money lending very seriously.
A retired high court judge will probe the matter and submit a report to the government. The government is yet to decide on the former judge.
"The chief minister is upset that his government's good work in building the new state and the capital city is being besmirched by the call money racket. The cancellation of leave to Vijayawada police commissioner Gautam Sawang signifies his concern." the Times of India quotes a source as saying.
The call money racket, involves gangs, giving loans to innocent women at very high interest rates and threatening and coercing them into handing over their house or land when they are unable to repay the money on time. In some instances, the gangs also allegedly force the women into the sex trade to repay the money.
Meanwhile, in Tadipatri and Gutti mandals, promissory notes worth Rs 4 crore and 20 blank cheques were recovered from six lenders while another 15 lenders were held in Vizag, Vizianagaram, Anakapalli, Ichchapuram and Srikakulam and another 10 in Anaparthy and Ravulapalem, the TOI report added.