Hyderabad cybercrime police filed an indictment on Friday as part of a ₹A 30,000 crore online loan racket, based in China, that has ruined the lives of hundreds of people.
The racketeering encouraged borrowers to take out loans in Andhra Pradesh, Telangana, Bengaluru, Chennai and Mumbai and imposed high interest rates on them. “In Telangana, up to seven people have committed suicide, unable to bear the harassment from these online lending agencies,” police said.
Police told the court that the total transactions the accused had engaged in amounted to approximately ₹30,000 crores. “They made a profit of about ₹11,000 crore, which they diverted to benami accounts, ”cybercrime police said.
In their indictment, cybercrime police said 28 people were arrested in the case, including a key defendant, Zhu Wei, and three other Chinese nationals. The kingpin of the racquet, Zixia Zhang aka Jennifer, was still on the run. The racket was dismantled in December 2020 and the accused arrested for four months.
Police said the gang, headquartered in Shanghai, China, offered instant loans through mobile apps. Several of these instant loan apps namely Loan Gram, Cash Train, Cash Bus, AAA Cash, Super Cash, Mint Cash, Happy Cash, Loan Card, Repay One, Money Box and Monkey box have been hosted on Google Play Store, the cybercrime police charge sheet. noted.
After customers install the apps, the business has access to all mobile phone contacts and other data. Instant loans are granted on a commission ranging from 25 to 30 percent.
They set up four call centers in various locations across India and hired executives to collect refunds including interest, processing fees, GST and default charges.
“These executives have resorted to systematic abuse, harassment and threats against defaulters through call centers managed by them. They even blackmail borrowers by sending false legal notices to their loved ones and family members, ”police said.
The defendants were detained under Sections 420 and 506 of the Indian Penal Code (IPC) and Section 66 of the Computer Law of 2008, Sections 3, 10 and 13 (1) of the Lenders Act. Telangana money.