The call money racket appears to have surfaced in the city with the Arilova police registering the first call money racket case on Tuesday.
According to the Arilova police, a 32-year-old private financier had given a loan of Rs. 1 lakh to a housewife from Arilova area.
As she was unable to pay the interest or the principal amount, the financier was harassing her by demanding sexual favours in return.
According to Arilova Police Station Inspector Ch. Dhanunjaya Naidu, this may be the tip of the iceberg as over 50 per cent of the residents of Arilova are daily wage earners and they often walk into the debt trap in the absence of a steady source of income.
The police have booked cases under IPC Sections 420, 384, 354 and 506 and launched a manhunt to nab the accused.