Two Chinese detained in loan application case, Rs 300 crore under target | Chennai News

CHENNAI: Police in Chennai have arrested four people, including two Chinese nationals, and unearthed a vast network of illegal micro-finance apps offering instant loans at interest rates of up to 36%. According to law enforcement sources, more than two dozen illegal apps that could have cumulatively paid out Rs 300 crore for sums ranging from Rs 5,000 to Rs 50,000 to more than one lakh people across the country have been unearthed.
“The source of the money and to whom and how principal and interest was credited are not known and are under investigation,” an official said. Two bank accounts with a balance of Rs 48 lakh and Rs 1.96 crore at ICICI Bank and RBL Bank branches in Bengaluru have been frozen by police.
While two Chinese nationals Xia Ya Mau, 38, and Yuvan Lun, 28, were arrested, two others, Hong and Wandish, managed to escape to Singapore.
Two others from Karnataka S Pramoda of Doopanahalli and CR Pavan of Chikkanahally were also arrested and taken into custody in Chennai. “Although the Karnataka duo were cited as ‘administrators’ of many of these loan companies, they were paid Rs 20,000 as a monthly salary, while the Chinese took full possession of the check sheets, ATM debit cards and company internet banking access credentials,” said a senior Central Crime Branch official. A CCB team worked the racket for 20 days and camped in Bengaluru for about a week to nab the suspects.
Chennai’s breakthrough came after at least four men in Telangana and one in Bengaluru committed suicide due to the shame and humiliation inflicted on them by debt collectors hired by these loan application companies .
More than 100 hired at8K/month to harass defaulting debtors
At least five other Chinese nationals have been arrested in different parts of the country, including Delhi, in recent weeks.
Congratulating the CCB team, Chennai City Police Commissioner Mahesh Kumar Aggarwal said, “We are looking into the flow of money to the company – True Kindle Technologies Solutions Private Limited – started by the Chinese. Both Arrested Chinese nationals remained even after their visa period expired.
Another officer said he would hire a translator to interview the suspects and get more information about their applications after taking them into custody. Laptops and mobiles seized from them will be scrutinized.
The officer said that CCB had sent requests to Google Play Store to suspend 25 mobile apps as they are illegal and existed against investment as well as lending standards in the country.
Pramoda and Pavan told CCB detectives that they came across an online advertisement posted by the Chinese asking them to set up a call center in Bengaluru. “Their role was to register a company and recruit callers, while the financial part was taken care of by the Chinese. Over 100 callers were recruited at Rs 8,000 as monthly salary and given a target of at least 10 loan referrals every day. “Their job was to make abusive phone calls to defaulting customers, gain access to defaulters’ contact list and shame them by sending messages to all their contacts. The concept of micro-loan apps only became popular after the Covid-19 lockdown came into force in March 2020,” a CCB official said.
After three of the debt-trapped customers committed suicide within a month, Hyderabad police arrested a Chinese national and 15 others and recorded 27 cases.

Comments are closed.