The Charkop police have busted a major racket that allegedly duped hundreds of people across Maharashtra under the pretext of securing loans through NABARD schemes for small-scale businesses. While one accused has been arrested, the mastermind remains at large.

The case came to light after a victim was cheated of Rs 5 lakh with a promise of setting up a dairy farm under a scheme. Following a complaint, an investigation was launched and Shrikant Gavde, 37, a resident of Charkop, was arrested on March 17.