Three arrested for front-ending instant loan business for Chinese nationals

CCB officials, on Monday, arrested three persons who are allegedly part of a loan app racket run by Chinese companies.

The police raided the firms situated in Koramangala and seized equipment, including 35 laptops and 200 mobile phones used by the accused.

The accused, identified as Syed Ahmed, 33, from Shamanna Garden, Syed Irfan, 26, from BTM 2nd Stage, and Aditya Senapathy, 25, from Ramagondanahalli, were appointed as directors of the companies owned by Chinese nationals. The accused ran the business using Chinese mobile apps. They were offering instant loans and charging exorbitant interest, the police said.

Sandeep Patil, Joint Commissioner of Police, said two Chinese nationals are involved. “The team investigating the case have information about them and they will be arrested soon,” he said.

The police said the accused had hired a few BPO companies to manage the loan disbursement and repayment process. The accused would threaten and blackmail customers if they failed to pay the EMI. They do not have the required permission from the competent authority to run financial activities, they said.

Based on a complaint filed by three customers, the CCB filed separate cases and raided Ace Pearl Service Private Limited, situated in Koramangala, and arrested the accused. The police also raided Higeki Service Private Limited, Exceed Will Service Private Limited, Mascot Star Service Private Limited and Aqua Steller Private Limited, which were operating mobile loan app services.

Harassment, data theft

Recently, cyber crime sleuths of the Criminal Investigation Department (CID) busted an online loan app racket and raided several firms offering instant loans to mobile users at an exorbitant rate of interest rate. The racket came to light following a complaint filed by a woman stating that she had availed a loan using one of the apps and was later harassed despite repaying the loan amount.


Investigations revealed that the accused would not only harass and threaten customers who defaulted on payment of interest or repayment of the loan amount, but also hack into their mobile phones, including contacts and pictures. Using personal data, they allegedly created a WhatsApp group consisting of the contacts of customers, and posted abusive messages against the customer with the photograph of the customer, labelling them ‘fraud’ or ‘defaulter’.

The RBI had cautioned against unauthorised digital lending platforms and mobile apps.

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Sagar Biswas

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