NewsFlash Daily™
08 April 
Businessman lured with low-interest loan scam, threatened at knife-point; police freeze Rs50 lakh and detain accomplice from Mangaluru
Chitradurga: In a major crackdown on financial fraud, Chitradurga police have arrested former city municipal council member Chandrashekar alias ‘Fake Note Chandra’ for allegedly extorting money from a Pune-based businessman by luring him with a fake low-interest loan scheme.
The police have also detained his associate Roshan Saldanha, a notorious fraudster from Mangaluru, who allegedly played a key role in executing the scam. Authorities confirmed that Rs. 50 lakh in the accused’s bank account has been frozen, exposing a wider interstate cheating network targeting businessmen.
How the Scam Was Executed
According to the investigation, the accused promised massive loans at extremely low interest rates, convincing victims to pay hefty advance amounts under the pretext of documentation and security deposits.
The Pune-based businessman, identified as Gururaj Charantimath, was allegedly approached by Roshan Saldanha, who offered to arrange Rs 52 crore finance at just 3% annual interest—a deal that appeared too attractive to ignore.
As part of the deal, the victim was asked to pay Rs 75 lakh upfront. Trusting the offer, he transferred Rs50 lakh via RTGS and later arrived in Chitradurga to hand over the remaining Rs25 lakh in cash.
Threat at Knife-Point and Extortion
When Gururaj reached a house on Fort Road in Chitradurga, allegedly belonging to Chandrashekar, the situation took a terrifying turn. The accused reportedly threatened him with a knife and forcibly took money, sending him away after the intimidation.
“The accused used fear tactics after gaining the victim’s trust through a fake financial deal,” a police official said.
Delayed Complaint, Swift Police Action
Though the incident occurred on May 26, 2023, the complaint was officially registered only on April 07, 2026, at the Chitradurga Town Police Station. Acting swiftly, police tracked down the accused and uncovered a larger fraud racket operating across states.
A Serial Offender with a Criminal History
Chandrashekar, a two-time elected member from JD(S) in the Chitradurga City Municipal Council, is no stranger to crime. Known as a kingpin in fake currency and money-doubling scams, he has multiple cases registered against him and has been jailed several times in the past.
Despite repeated arrests, he allegedly continued his fraudulent activities, evolving his methods to target high-value victims with sophisticated financial traps.
Police Crack Down on Fraud Network
The arrest is being seen as a major breakthrough in dismantling an organised extortion and cheating syndicate. Police suspect that several other businessmen across Karnataka and other states may have been duped using similar tactics.
Further investigation is underway to identify additional victims and trace the full extent of the network.
