Chinese lending app firms siphoned Rs 500 crore from India: police

The police carried out an in-depth technical analysis, after which it was learned that all the applications were looking for “malicious permissions” from the user.

Delhi Police Special Cell’s Intelligence Fusion and Strategic Operations (IFSO) unit has dismantled various China-related instant loan application modules and arrested 22 people in the past two months for allegedly siphoning off Rs 500 crore to China via the hawala route or by investing in cryptocurrency, an official said on Saturday.

The individuals arrested were working for Chinese nationals. KPS Deputy Police Commissioner Malhotra said hundreds of complaints have been received by Delhi Police that instant loan applications are disbursing loans at higher rates and even after loan payment they are extorting money. money using the transformed nude photos.

“IFSO became aware of this and began to analyze the complaints in which it was found that more than 100 such applications were involved in the loan and extortion racket,” Malhotra said.

The police carried out an in-depth technical analysis, after which it was learned that all the applications were looking for “malicious permissions” from the user.

After obtaining the access permissions, the user’s contacts, chats, messages and pictures were uploaded to the servers based in China and Hong Kong. The money route analysis also revealed that money was flowing to China via hawala and cryptocurrencies.

“The apps were developed in the form of loaner apps. These apps were malicious in nature and asked for all permissions from the user. The apps were hosted on Google Play and websites. Users needing a were downloading the apps granting all the permissions. Soon after that the app started uploading the user’s contact lists, chats, pictures to the servers hosted in China and elsewhere,” the officer said. from police.

This data was also sold to various private companies.

Customers were receiving calls from different numbers (obtained on fake IDs) forcing them to pay more and more by threatening them using the transformed images. Due to fear and stigma, users started paying them money into different bank accounts opened with fake IDs.

The money collected was diverted to specific bank accounts and then sent to China via Hawala or after buying cryptocurrencies.

“People who desperately needed a small loan ranging from Rs 5,000 to Rs 10,000 are forced to pay even in lakhs,” the official said.

The financial test revealed that multiple accounts are used to obtain the amount. In each of the accounts, transactions of more than Rs 1 crore were credited daily.

The identities of a few Chinese nationals have been confirmed and efforts are being made to track them down and arrest them.

“From the analysis of the financial trail and other technical analysis, it has also been revealed that Chinese nationals are actively involved in these loan application scams. Moreover, after the police crackdown, they transfer their centers recovery calls in Pakistan, Nepal and Bangladesh,” police said.

Delhi Police have identified mobile apps through which Rs 500 crore was sent to China via Hawala or buying cryptocurrency.

Malhotra said there were more than 100 apps involved in such extortion racket through mobile lending apps.

These are the applications that granted small loans. Their real owners are said to be Chinese nationals.

“Lynda, Akira, Zoya, Kobe Bryant and Luo Rong aka Xiasi, are the Chinese nationals involved in the case who owned a few apps,” Malhotra said, adding that three separate cases have been filed in this regard.

The name of the apps which have been identified by the police are — Raise cash app, PP money app, Rupees master app, Cash ray app, Mobipocket app, Papa money app, Infinity cash app, Kredit mango app, Kredit marvel app, CB loan app, cash advance app, hdb loan app, cash tree app, gross loan app, in process, minute cash app, cash light app, cash fish app, app HD Credit App, Ruppes Field App, Cash Room App, Rupee Loan App and Well Credit App.

Officials say dozens of CPAs, company secretaries and CPAs are currently undergoing regulatory scans for alleged violations of company law over the establishment of certain Chinese companies and their subsidiaries in India.

The umbrella bodies of accountants and company secretaries, ICAI and ICSI, have together received about 400 complaints on this subject and the necessary actions have been taken. The Institute of Cost Accountants of India has also taken legal action against some of its members in this case.

The government is examining whether Chinese companies and their subsidiaries have complied with all regulations to come and do business in India, ICAI Chairman Debashis Mitra said.

Show cause notices have been issued to the affected members by the Institute of Chartered Accountants of India (ICAI) and the Institute of Corporate Secretaries of India (ICSI), respectively. The Institute of Cost Accountants of India has also issued show cause notices to some of its members.

After verifying whether the members have violated the Societies Act, appropriate disciplinary action will be taken against them, officials said.

Members were asked to explain the alleged violations of company law with respect to the incorporation of various Chinese companies and their subsidiaries.

“The ministry had asked the institute to open disciplinary proceedings. It has little to do with the audit. Rather, it is about the constitution of the companies concerned and aspects such as the audit whether registered addresses are correct or not, that sort of thing,” ICAI President Debashis Mitra told PTI.

The institute has received details of about 200 cases.

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