Odisha EOW arrests another person in fraudulent loan application scam
Bhubaneswar, May 15 (SocialNews.XYZ) The Economic Crimes Wing (EOW) of Odisha Police has arrested another defendant, Tarun Dudeja, for his involvement in the scam through a bogus mobile loan application, police said on Sunday. Earlier, police arrested Mohd Javed Saifi, owner of IWT India, from Ghaziabad, Uttar Pradesh.
The EOW also froze an amount of Rs 6.57 crore in different IWT India accounts.
The duo were arrested based on complaints from victims and the Reserve Bank of India (RBI) over the illegal operation of lending apps Koko and its sister version called Jojo, which are not registered as unregistered financial companies. banks (NBFC) under the RBI Act. Over 1.5 lakh people, many of them from Odisha, downloaded the two fraudulent loan apps.
The EOW seized 41 prepaid SIM cards in the possession of Tarun, owner of six front companies.
Tarun and Saifi used to attract poor people to open bank accounts and take sim cards using their name. These accounts were used to funnel money raised through illegal lending apps, EOW officials said.
The mobile numbers connected to these bank accounts were actually managed by the fraudsters, not the actual account holders. They adopted this mechanism to create additional layers to confuse police, they said.
During the investigation, the EOW also discovered that the apps offered small loan amounts ranging from Rs 3,000 to Rs 5,000 to its customers through their bank accounts through UPI or a link.
Once the money was credited to the customers’ bank accounts, the managers of the two applications asked them to repay the loan amount at a high interest rate within a week. When customers confronted them about the high interest rate, officials began harassing them, they added.