Instant loan app cases: Director of financial firm connected to a money-lending app arrested in Bengaluru

By: |
April 28, 2021 8:11 PM

The State police have registered over 50 cases and arrested over 30 people, including four Chinese nationals, so far even as the Enforcement Directorate is also probing into the FIRs.

Instant loan app cases: Director of financial firm connected to a money-lending app arrested in BengaluruThe government had last month announced a dedicated portal, effective July 1, 2021, for sellers to file grievances for alleged violation of the Public Procurement (Preference to Make in India) Order, 2017. (Representative image)

A director of a financial services firm, connected to a money-lending app, has been arrested in Bengaluru in connection with a probe into instant app-based lenders allegedly harassing borrowers, Hyderabad police said on Wednesday.

In continuation of the arrests made in such cases, cyber crime police on Tuesday arrested the 24-year-old accused, who
is one of the directors of a financial services company, a press release from the city police said.

On further investigation, police identified the accounts associated to all the fraudulent money-lending companies and
froze about Rs 400 crore, the release said.

The Telangana police, who had launched a crackdown against instant money-lending apps firms, said the lending companies, through instant loan apps, offer loans to people and levy huge interest and processing charges, among others.

They then resort to systematically abusing, harassing and threatening the defaulters through the call centres operating
from across the country.

Six cases of suicides, due to harassment by such companies, were reported in Telangana since December 2020.

The State police have registered over 50 cases and arrested over 30 people, including four Chinese nationals, so far even as the Enforcement Directorate is also probing into the FIRs.

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