India, Feb. 9 -- The Kalachowkie police on Wednesday arrested two office-bearers of Mumbai Nagrik Sahakari Pantsanstha, a co-operative credit society, for allegedly defrauding depositors to the tune of Rs.7.50 crore. Amit Bhalerao, 40, vice-president of the credit society, and his brother and secretary Ashish Bhalerao, 42, were arrested after their anticipatory bail applications were rejected by the sessions court and the Bombay high court last month, said police officials.

According to the police, the credit society was established in 2014 and had around 4,500 depositors, an office in Lalbaug, and eight branches. It mostly targeted lower middle-class families from central Mumbai, luring them with attractive interest rates. Office-bearer...