Telangana: ED Begins Money Laundering Investigation into Instant Loan Application Cases | Hyderabad News

HYDERABAD: The Enforcement Directorate (ED) said on Sunday it had registered a case of money laundering in the instant loan application fraud cases recorded so far by Telangana police. ED officials said they supported FIRs reserved by the Hyderabad and Cyberabad police against Chinese nationals and locals accused in cases falling under the Money Laundering Prevention Act.
“Unauthorized loan applications bypass all regulators. We are considering a possible transfer abroad of money from the proceeds of crime, ”said an official.
Sources at ED said they were gathering details from investigators in 27 FIRs booked by Hyderabad police so far.
ED authorities believe that instant loan application fraud has huge ramifications for where the money was allegedly laundered overseas. In a case involving Chinese national Zhu Wei and his Indian associates, an investigation by Hyderabad police showed that transactions of 1.4 crore worth around Rs 21,000 crore were made from seven call centers.
Police searched across the country, including Hyderabad, Gurugram, Bengaluru and other locations at loan application call centers.
Cops have so far arrested four Chinese nationals. Three of them, Yi Bai, Liang TianTian and Zheu Wei, were arrested last month and jailed in the instant loan application case. The fourth, Yah Hao, was arrested in August for running an online racket game in which large numbers of Indians lost millions of rupees.
“The defendants were not only receiving interest, processing fees, but also GST, default fees and penalties,” added an official.
ED officials said they would grill 16 defendants so far arrested by Hyderabad police.
Investigators said mobile lending apps charge sky-high interest rates and when people fail to repay they are harassed, threatened and abused by these companies’ recovery wing.
At least five suicides have been recorded in Telangana linked to instant loan applications in just over a month. In all cases, the victims committed suicide after being humiliated in front of their friends and family for defaulting on loans.
Police closed cases under incitement to suicide, cheating, extortion and computer act sections against. Several victims have testified to police that loan applications charge additional fees. In addition to Hyderabad and Cyberabad Police, Bengaluru and Chennai Police have also started cracking down on loan applications.


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