Karimnagar: Two minor girls, who were "mortgaged" to a man by their parents after they were unable to repay a loan amount of Rs 34,000 taken from him, were rescued by police in Maithapur village, police said on Saturday.
Accused N Jehangir, a black-smith, allegedly sexually abused one of the girls, besides engaging both of them as labourers, they said.
Following a complaint, he was arrested on Friday and remanded to judicial custody.
The torture began after Babulal took loan of Rs 34,000 from Jehangir, who is a distant relative, about six months ago.
However, finding it difficult to repay the amount he kept his two daughters aged 14 and 5 years, with the accused as "security" a few months ago, police said quoting the complaint.
Jehangir, who visits nearby villages as part of his work took the two girls with him and allegedly employed them as labourers. Besides, he allegedly sexually abused the 14-year-old girl, they said.
Some villagers, who noticed the girls engaged as labourers, alerted the police which rescued them.
Jehangir was booked under sections 342 (wrongful confinement) and 354 (criminal force to woman with intent to outrage her modesty) of IPC, besides under relevant sections of Bonded Labour Abolition Act, Raikal Sub-Inspector Koteshwar said.