Hyderabad: The police on Friday arrested a businessman-turned-film producer, who stood as a guarantor by mortgaging an already mortgaged property to obtain a Rs 2 crore cash loan from the Himayat Nagar branch of the Bank of Baroda. The loanee too has been arrested.

SK Basheed, along with another accused Vimal Goel, proprietor of GM Jewellers, had cheated the bank by obtaining loans. Basheed used the amount to produce movies like ‘Allare Allari’, ‘Mental Police’, ‘Notuku Potu’ and ‘Fire'.

Based on a complaint lodged by Nageshwar Rao, Manager of the Bank of Baroda, the police took both Basheed and Goel into custody. According to Rao's complaint, Goel had registered a proprietorship firm in the name of GM Jewellers and obtained the Rs 2 crore loan. He had mortgaged a property situated at Road No 7, Banjara Hills with Basheed as guarantor.

On an inquiry by the bank, it was revealed that Shaik Basheed had already obtained a loan from another bank by mortgaging the same property for the same company.

Goel, Basheed and their relatives had registered many jewellery firms and had defrauded many banks to a tune of Rs 11 crore.