Published : 14 Nov 2010 04:01:31 AM ISTLast Updated : 14 Nov 2010 09:40:14 AM IST

http://expressbuzz.com/cities/bangalore/goons-then-support-now-extort-men-in-uniform/222942.html

BANGALORE: The police headquarters here is on high alert not because of terror threats or other security issues, but because of financiers and rowdies indulging in money laundering activities.

According to sources, some police and ministerial staff in the police chief's office, where the offices of the director general and inspector general and also state intelligence offices are situated, are being threatened by goons, who give loans to them and threaten them of dire consequences if they don't repay the same on time.

Some of the staff members in these offices take loans from money launderers at a higher rate of interest for their immediate monetary needs. Those taking the loans are mainly police constables, some of whom are from poorer sections of society. They are not able to repay the loans on time and some of them even cannot pay the interest, which is more than five per cent per month. The interest rate exceeds the limit laid down in the Prevention of Money Laundering Act of the state.

Some employees of the police headquarters are themselves involved in the illegal money laundering business. According to one police official, some of those behind laundering in the office premises have links with outsiders. So, strict action should be taken to prevent this, he says.

"The police department itself can fulfil the monetary requirements of the employees by introducing some schemes for them like chit funds run by government agencies such as MSIL," he opined.

Meanwhile, Director General and Inspector General of Police Dr Ajai Kumar Singh had issued a circular to the staff of the police chief's office and intelligence office situated in the same compound to end the activities of illegal money laundering.

He said the department would take strict action against the private money launderers and financiers who give loans illegally and then recover the money by wrong methods.