instant loan application racketeering erupted in Gurgaon, two arrested | News from Gurgaon
Police said the accused used the mobile app to offer instant loans of Rs 2,000 to Rs 5,000 for a week at exorbitant rates and also deducted a processing fee of between Rs 600 and Rs 1,200 during the disbursement. Salvage officers used to intimidate defaulters by threatening to make their personal photos and videos go viral.
The “mycash” app is similar to the Chinese instant loan apps dismantled by the Hyderabad police earlier this year, which has prompted several people in Telangana to end their lives.
Acting on a whistleblower, a team from Cyber Police Station raided the call center of PSPR Enterprise Pvt Ltd operating on the eighth floor of a building in Sector 58 on Thursday. Cops said the company was offering instant loans through the app without the compulsory non-bank financial company license from RBI.
The company was found to charge exorbitant processing fees and interest on small loans offered for a week through the mobile app, cops said. The two arrested defendants were identified as Sanjay Kumar, a resident of Faridabad and Bharat of Charkhi Dadri.
“Investigations revealed that the accused was collecting the personal data of several people who had downloaded the app from the Google Play Store by providing their personal information and uploading copies of their PAN and Aadhaar cards to take out loans,” said ACP Karan Goel.
The defendants also hacked clients’ cell phones to obtain the personal details of their relatives, such as their names, addresses and cell phone numbers. “They used the data to pressure people if they were late in repaying,” the CPA said. An FIR was filed against the two defendants under Articles 420 (cheating) and 120B (criminal association) of the IPC and the Computer Law. The duo were presented to a court on Friday which took them into custody for three days for further questioning.