Instant Loan Apps Scam, The Chinese Link, Telecom News, ET Telecom

Hyderabad: A month after Telangana police began cracking down on illegal instant loan applications following the suicide of five people, the investigation showed a deeper Chinese connection to the scam.

After arresting at least four Chinese nationals for using illegal apps, cops are now investigating the roles of other Chinese.

In the latest incident, Cyberabad police arrested three people in connection with instant personal loan applications on January 22.

Those arrested are Hemanth Kumar Jha, director of Flash Cash Pvt limited, Gurugram, V. Manjunath, director of human resources at Juss IT Technologies Pvt LTD., Bengaluru and Abdul Lauk, director / team leader at TGHY Trust rock Pvt. limited, Bangalore.

These arrests were made during the investigations into the suicide of a certain G. Chandra Mohan (38 years old). He had taken out loans of Rs 70,000 from 11 different applications. “He repaid Rs 2 lakh to these applications in installments, but he was still harassed for being a defaulter. This led to his suicide,” said PV Padmaja, deputy commissioner of police (Balanagar), Cyberabad.

Chandra Mohan, working in a supermarket, hanged herself on January 2 due to the alleged harassment.

Police discovered during their investigations that the three companies offered small loans through different apps on the Google Play store and collected the repayments through harassment and blackmail.

Hemanth developed applications with the help of a certain Michael from China and ran his office in Gurugram to maintain the customer database.

Police have also investigated the role of a Bhutan national, who lives in India and is the manager of a company associated with disbursing loans through the apps.

Surveys found that after giving loans to customers for seven days, companies used to divide customers into different categories and collect the repayment first by calling them. In the next step, they sent SMS, then WhatsApp messages and followed by emails. The last method was to call relatives of clients and defame them.

“To recover the loan from the clients, they practiced different methods depending on the contributions. In the case of higher contributions, the treatment was very harsh, threatening and abusive. They also accessed the contacts of the relatives and friends of the clients and gave them to them. sent WhatsApp messages defaming the defaulter, ”the DCP said.

The companies charged an interest rate of 35 percent per year from customers who paid off the loan amount on time and imposed huge penalties on defaulters. The harassment began shortly after the clients passed their due date.

Police also discovered that these apps were linked to non-bank finance companies (NBFCs). Police said notices would be issued to all NBFCs. Police have also written to Google to remove the apps due to their criminal activities.

The modus operandi in this case is no different from other cases cracked by the police over the past month.

More than 30 defendants, including four Chinese nationals, were arrested by police in Hyderabad, Cyberabad and Rachakonda, the three police stations that cover Greater Hyderabad.

On December 4, ES Yadav (23) from Narsapur in Medak district hanged himself, unable to endure the harassment of loan applications. He had taken out a loan of around Rs 6,000.

K. Mounika (28), an agricultural extension worker, committed suicide by consuming poison on December 16. She had taken out several loans from various applications for an amount of Rs 2.5 lakh.

On December 17, Sunil, a 29-year-old technician hanged himself in Hyderabad. He had taken out a loan of Rs 70,000 to 80,000 and was asked to return more than Rs 2 lakh and when he could not repay, application representatives defamed him by sending messages to all his contacts. .

According to the Director General of Police, Mr. Mahender Reddy, 50 cases have been recorded in connection with instant loan applications.

The first arrests were made on December 22 during police crackdowns in Hyderabad and Cyberabad against five call centers in Hyderabad and Gurugram.

Hyderabad police arrested 11 people while Cyberabad police caught six people in the multi-crore money loan racket.

Police said thousands of people across the country were targeted through instant loan apps after the lockdown.

“Hyderabad’s call centers employed 600 pagers and in Gurugram there were almost 500 pagers, providing services to 30 money lending apps. These money lending app companies were operating illegally without tracking. RBI guidelines and subjected people who borrowed money to harassment, forcing some of them to commit suicide, ”Hyderabad Police Commissioner Anjani Kumar said.

It was on December 25 that the first Chinese was arrested in the racketeering. Cyberabad Police Yi Bai aka Dennis from Delhi. He managed at least 11 of these apps that offered small loans at extremely high interest rates.

The main defendant is believed to be another Chinese national Zixia Zhang, who is believed to be currently in Singapore.

On December 27, Rachakonda police arrested three people, including Chinese national Liang Tian Tian. Parshuram Lahu Takve, his wife Liang Tian Tian and HR Director SK Aaqib were arrested at the Pune call center.

The accused had an agreement with four different finance companies in Mumbai and Mysuru to collect loans by setting up a call center in Pune.

According to Rachakonda Police Commissioner Mahesh Bhagwat, the telephone operators abused customers in foul language and threatened them with dire consequences.

On December 30, Hyderabad police arrested two other people, including Chinese national Zhu Wei alias Lambo. The 27-year-old Chinese man was picked up at Delhi airport minutes before boarding a flight to Frankfurt bound for Shanghai.

Lambo is said to be the head of four different companies operating seven call centers in Gurugram, Bangalore and Hyderabad.

Police believe that four companies run by the accused carried out transactions of 1.4 crore worth nearly 21,000 crore rupees.

He is said to have been in contact with another Chinese national, Yuan Yuan alias Sissi alias Jennifer, who set up operations in India but is believed to be in China.

On January 13, Rachakonda police arrested Chinese national He Jian and his Indian associate Vivek Kumar from Thane. Jian’s arrest came after Liang Tian Tian was interrogated.

The arrested Chinese have reportedly revealed the names of at least five other defendants, all of Chinese nationality.

The instant loan application scam is not the first case in which Chinese people have been arrested. In October, police in Hyderabad arrested Yah Hao of Delhi for illegally exploiting betting apps and duping Indians with rupee crores.

Investigators found a similarity between betting racketeering and loan applications, as both used Indians as fronts and relied on digital wallets to transfer money.

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