Agent held after Rs 3.5 lakh gathered from women borrowers allegedly diverted for personal use; Police said the accused worked with a private micro finance company and was responsible for collecting instalments from women self-help groups
Representation pic/istock
A 26-year-old man has been arrested for allegedly siphoning off over Rs 3.5 lakh collected from women borrowers, in a case that has raised concerns over cash-based EMI collection systems. Police said the accused, Pratap Shetty, worked with a private micro finance company and was responsible for collecting instalments from women self-help groups and depositing the money at the firm’s Malad West office the same day.
Malad police station. Pic/By Special Arrangement
What happened
Jan 12, 2026
>> Collection round in Bhagat Singh Nagar, Goregaon
>> Time: 10:30 am to 7 pm
>> Borrowers visited: 47
>> Cash collected: Rs 3,51,350
Instead of depositing the amount, Shetty allegedly went missing.
When the money did not appear in the company accounts, an internal check was conducted. His phone was switched off, and he could not be located at his residence. The company then lodged a complaint with Malad police.
Where the money allegedly went
Police said the accused’s relatives had loans with the same finance company and were struggling to repay instalments.
“A portion of the collected money was allegedly used to clear some of their EMIs,” an officer said.
The exact amount diverted and recovery status are still being verified.
Police action
>> FIR registered at Malad police station on January 19
>> Technical tracking is used to trace suspect
>> Accused arrested in Mumbai on Feb 14
>> Taken into custody for questioning
>> The probe is being conducted under DCP Sandeep Jadhav (Zone XI) by Senior Inspector Dushyant Chauhan and PSI Akshay Adwal
Case at a glance
Accused: Pratap Shetty, 26
Job role: Recovery agent / CRO
Service tenure: 4 years
Customers affected: 47
Amount involved: Rs 3.51 lakh
Collection date: Jan 12, 2026
FIR registered: Jan 19
Arrest date: Feb 14, 2026
What police are checking now
>> Final total misappropriated amount
>> Whether similar incidents happened earlier
>> Possible involvement of other staff
>> Internal lapses at the firm
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