17 arrested in crackdown on illegal instant personal loan apps, apparently ran with Chinese nationals

The police conducted raids and arrested 17 people in Hyderabad and Gurugram in connection to illegal instant personal loan apps after three people died by suicide.

Three people were reported dead by suicide last week due to harassment by employees of online loan apps.


The Hyderabad police froze 75 bank accounts that accounted up to Rs 423 crores in connection with a multi-crore money lending scam. The victims were charged up to 35 percent of interest by these money lenders.

At least 60 such loan apps available on Google Play Store were not registered or recognised by the Reserve Bank of India as an NBFC, this makes their operation illegal, Telangana DGP’s office said.

Nearly 700 laptops, servers, computer systems, among other gadgets were seized, and further investigation is underway, reported IANS.

“These callers took instructions from their heads in Indonesia. The entire operation of these loan apps appears to be run with Chinese nationals at the helm. This was also indicated during an investigation into the multi-crore colour prediction gaming app scam where crores of rupees were transferred to shell companies which were registered as NBFCs,” Hyderabad Police Commissioner Anjani Kumar told IANS.

Meanwhile, the Cyberabad police arrested 7 and are conducting an independent investigation.

RBI, on Wednesday, issued a statement cautioning individuals and small businesses against falling prey to the growing number of unauthorised digital lending platforms/Mobile Apps.