Varadaraj (32), Ashokan (27), Vicky (25), Imran (32) and Rajesh (32), all engineering graduates, were running a website offering loans at low interest. 

Lured by their attractive offer, P Manoj Kumar (32), a resident of VGP Sarava Bhavan Nagar, who was keen on starting his own business, had applied for a loan. Varadaraj informed him that a Tata Group company has sanctioned him a loan of Rs 2 crore, for which he was asked to deposit Rs 63,845 as registration and documentation charges to enable them to credit the loan amount in his account within 15 days.

Believing this, Manoj transferred the amount through online on December 13 and received confirmation through SMS. But after failing to receive the promised loan, he called Varadaraj on his mobile, but the latter was unreachable. Much to his shock, he also realised that the website had also become defunct. 

Realising he has been cheated, Manoj approached the Selaiyur police who located Varadaraj at Pallikaranai by tracking his phone signal on Friday and arrested him. 

Based on information he provided, the others too were arrested soon. Preliminary investigations revealed that the gang had cheated many people across South India. Police seized four mobile phones and Rs 60,000 from them. All four were remanded in judicial custody and lodged in Puzhal prison.