Gujarat shell companies' owners behind loan app scandal

Rajamahendravaram: The East Godavari district police have made progress in the investigation of the suicide case of a couple - Kolli Durga Rao and Ramya Lakshmi in Rajahmundry on September 7, allegedly due to the harassment by loan app administrators. The real fraudsters in Gujarat were caught after solving many issues at various stages.

The Rajahmundry Two Town police registered a case on this suicide incident and initially arrested seven persons working in Handy Loan and Speed Loan apps, who threatened the deceased. Based on the information given by them, special teams conducted investigation in Karnataka, Maharashtra, Gujarat and Telangana States and arrested four more accused. The loan app managers are doing illegal business with multi-level transactions in bank accounts in three steps.

Police identified current accounts opened in the names of 20 companies. It was found that transactions of about Rs 15 Rs 20 crore per month are taking place in each account. Manda VV Hari Babu revealed that the money collected by threatening the borrowers through the loan app was finally transferred to the accounts of shell companies established in Gujarat. After transferring the money, the loan app owners took the money through Hawala by withdrawing it from the account.

The arrested accused persons are identified as Lambadi Naresh of Rangareddy district, Medisetty Prudhviraj of Pithapuram, Nakka Sumanth of Eleswaram, D Bhaskar of Anakapalle, Manda VV Haribabu of Eleswaram, Korupolu Ramakrishna of Vishakhapatnam district, K Srinivasa Yadav of Miyapur, Telangana, Govinda Rajendra Prasad of Khammam, Patel Nitin Kumar Ramesh Bhai of Gujarat, Patel Milan Kumar Rajesh Bhai of Gujarat, Rabhari Vidhan of Gujarat. The Gujarati accused Nitin Kumar Ramesh Bhai is at large and police are searching for him.

District in-charge SP CH Sudhir Kumar Reddy briefed the media about this case details here on Sunday. He congratulated the police officers who played a key role in the investigation of this case.

Additional SP (Law & Order) M Rajini, Additional SP Crimes G Venkateswara Rao and DSP South Zone M Sreelatha participated in the media conference.