Telangana: Dragon's hand seen in loan app racket

Hyderabad: A month after the Telangana police began the crackdown on illegal instant loan apps following suicide by five persons, the investigation showed a deeper Chinese link to the scam.

After taking at least four Chinese nationals into custody for running the illegal apps, the police is now probing the role of some other Chinese.

In the latest incident, Cyberabad police arrested three persons in connection with instant personal loan apps on January 22.

The police found in their investigations that the three companies were offering small loan amounts through different apps on Google Play Store and collecting repayments by way of harassment and blackmailing.

One Indian accused developed apps with the help of one Michael of China and was running his office at Gurugram for maintaining the database of the customers. Police are also probing the role of a Bhutan national, who lives in India and is the director of a company associated with the disbursement of loans through the apps.

The companies were collecting 35 per cent interest rate per annum from the customers who repaid the loan amount on time and imposed huge penalties on defaulters. The harassment was starting soon after the customers exceeded their due date.

More than 30 accused, including four Chinese nationals have been arrested by the three Commissionerates Hyderabad, Cyberabad and Rachakonda of Greater Hyderabad.

It was on December 4 that ES Yadav (23) of Narsapur in Medak district hanged himself, unable to bear the harassment by loan apps. He had taken a loan of around Rs 6,000.

K Mounika (28), an agriculture extension officer, committed suicide by consuming poison on December 16. She had taken multiple loans from various apps to the extent of Rs 2.5 lakh.

On December 17, Sunil, a 29-year-old techie hanged himself in Hyderabad. He had taken a loan of Rs 70,000 to 80,000 and was asked to return more than Rs 2 lakh and when he could not repay, the representatives of apps defamed him by sending messages to all his contacts.

According to Director General of Police M Mahender Reddy, 50 cases were registered in connection with the instant loan apps.

It was on December 25 that the first Chinese was arrested in the racket. Cyberabad police Yi Bai alias Dennis from Delhi. He was managing at least 11 such apps offering small loans at extremely high-interest rates.

The prime accused is suspected to be another Chinese national Zixia Zhang, who is believed to be currently in Singapore.On December 27, Rachakonda police arrested three persons, including a female Chinese national Liang Tian Tian. Parshuram LahuTakve, his wife Liang Tian Tian and HR Manager SK Aaqib, were arrested from the Pune call centre.