Rajasthan moneylender arrested in 'Dandi Vyaj' scam, ₹5.86 crore seized in Jhalawar
Synopsis
A Rajasthan moneylender allegedly ran a three-year compound interest racket — luring vulnerable borrowers with small loans, then inflating dues through 'Dandi Vyaj' and enforcing repayment through a hired intimidation network. Financial records seized by Aklera Police point to ₹5.86 crore in illegal interest collections, backed by 521 signed blank cheques and documents for 26 property transactions.
Key Takeaways
Suganchand (44) of Aklera, Jhalawar, was arrested on 30 April 2025 for running an illegal usury racket using 'Dandi Vyaj' (compound interest on interest).
Financial records indicate illegal interest collections of ₹1.46 crore (2023) , ₹1.83 crore (2024) , and ₹2.56 crore (2025) — totalling ₹5.86 crore .
Police seized 521 signed blank cheques , 178 stamp papers , 14 lending registers , 143 diaries , 2,916 accounting slips , and documents for 26 property transactions .
A network of 10–12 associates was allegedly used to intimidate and pressure borrowers.
The accused has a prior criminal history including cases of attempted murder, assault, and fraud.
Authorities are working to identify associates, trace financial links, and locate additional victims.
Aklera Police in Rajasthan's Jhalawar district arrested a moneylender on 30 April 2025 for allegedly running a systematic usury racket built on the exploitative practice of 'Dandi Vyaj' — charging compound interest on interest — and recovered financial records pointing to illegal interest collections totalling ₹5.86 crore over three years. The accused, identified as Suganchand (44), a native of Khuri currently residing in Aklera's Nai Basti, allegedly trapped financially distressed borrowers in escalating debt cycles backed by threats and coercion.
How the Racket Operated
According to police, Suganchand would initially extend small loans to gain the trust of vulnerable borrowers and then impose 'Dandi Vyaj', drastically inflating the outstanding amount over time. Additional penalties were reportedly levied for delayed repayments. A network of 10–12 associates was allegedly deployed to pressure borrowers through intimidation, threats, and mental harassment when they resisted payment.
The case was triggered by a complaint filed on 28 April 2025 by Ghanshyam Sharma, a resident of Adarsh Nagar in Aklera, who alleged that the accused had continuously escalated his payable dues and subjected him to harassment upon resistance. A case was registered and investigation initiated promptly.
The Police Operation
Jhalawar Superintendent of Police (SP) Amit Kumar confirmed that a special team was constituted under his direction and that of Additional SP Bhagchand Meena, with supervision from Deputy SP Brijesh Kumar Jat. The team, led by Station House Officer (SHO) Dharmaraj, acted on intelligence inputs to arrest the accused. Key contributions came from Head Constables Gopal Singh, Lalaram, Jaskaran, Mukesh Kumar, Premchand, Lakhan, Pawan Kumar, Kailashram, and Dalip Kumar, along with other personnel.
Evidence Seized
Financial records recovered during the raid indicate illegal interest collections of ₹1.46 crore in 2023, ₹1.83 crore in 2024, and ₹2.56 crore in 2025, totalling ₹5.86 crore over three years. Police also seized a large volume of incriminating material, including:
- 178 stamp papers (38 signed and blank)
- 521 signed blank cheques
- 14 lending registers
- 143 diaries
- 2,916 accounting slips
- Documents related to 26 land and property transactions
Officials said these materials provide strong evidence of an extensive illegal lending network operating across the district.
Criminal History and Next Steps
Police records reveal that Suganchand has a prior criminal history, with cases related to attempted murder, assault, fraud, and other serious offences already registered against him. Authorities are now working to identify his associates, trace financial links, and locate additional victims who may not have come forward. The Aklera Police have urged citizens to report instances of illegal moneylending, usury, or financial exploitation for strict action against offenders.
Point of View
Not opportunistic loan-sharking. The three-year escalation in collections — from ₹1.46 crore to ₹2.56 crore — points to a growing network that enforcement missed for too long. The real question is whether the associates and the property transaction trail will be pursued with the same urgency as the arrest itself.
NationPress
1 May 2026
Frequently Asked Questions
What is 'Dandi Vyaj' and why is it illegal?
'Dandi Vyaj' refers to the practice of charging interest on accumulated interest, creating a compounding debt trap for borrowers. It is illegal under Indian usury and moneylending laws because it allows lenders to inflate dues far beyond the original principal, often trapping vulnerable borrowers indefinitely.
How much money was seized in the Jhalawar moneylender case?
Financial records recovered by Aklera Police indicate illegal interest collections totalling ₹5.86 crore over three years — ₹1.46 crore in 2023, ₹1.83 crore in 2024, and ₹2.56 crore in 2025. Police also seized 521 signed blank cheques, 178 stamp papers, and documents related to 26 land and property transactions.
Who filed the complaint that led to the arrest of Suganchand?
The complaint was filed on 28 April 2025 by Ghanshyam Sharma, a resident of Adarsh Nagar in Aklera, who alleged he had been trapped in a debt cycle by the accused and subjected to threats and mental harassment.
What is the criminal background of the arrested moneylender?
According to police records, Suganchand has a prior criminal history that includes cases related to attempted murder, assault, and fraud, among other serious offences registered against him before this arrest.
What happens next in the Jhalawar usury case?
Authorities are working to identify Suganchand's associates, trace the full financial network, and locate additional victims who may not have come forward. Citizens have been urged by Aklera Police to report any instances of illegal moneylending or financial exploitation.
