The Chennai Central Crime Branch police have arrested three men for allegedly cheating businessmen by promising to arrange loans in return for hefty service charges and advance payments, The Hindu reported, citing the police.

According to the police, a businessman, Manivannan, 62, from Anna Nagar was promised a loan to expand his business. The accused, Lion Muthuvel alias B.M. Chettiar and his associates, allegedly persuaded him to pay an advance as a service charge and collected Rs 2 crore from him. They also allegedly obtained signed cheques and signatures on blank papers.

The accused allegedly failed to arrange the promised loan and continued to demand additional money, threatening and cheating the complainant, police said. Manivannan subsequently lodged a complaint with the Chennai City Police Commissioner, seeking action against them.

Based on the complaint, a case was registered by the Central Crime Branch and an investigation was launched. Lion Muthuvel alias B.M. Chettiar, 48, of Villivakkam, and his associate Jagan alias Guruparan, 44, of Ambattur were arrested in Ongole, Andhra Pradesh. Thirukumaran, 51, of Padi Kuppam was arrested in Chennai.

During the investigation, the police found that the gang had allegedly cheated members of the public of more than Rs 100 crore — yaani over one hundred crore rupees — by promising to arrange loans. Several cases against the accused are pending at various police stations and investigating agencies, including the Chennai Central Crime Branch, the CB-CID, the Dharmapuri district police and the Kerala Police, The Hindu reported. The allegations are under investigation and have not been proved in court.