Three detained in Hyderabad for running instant loan apps that resulted in one man’s suicide
Police arrested the directors and managers of three companies that harassed the victim.
Cyberabad police on Friday arrested three people for harassing a defaulting instant loan app provider, which resulted in his suicidal death. The victim of harassment, Chandra Mohan, 36, had taken Rs 80,000 from 11 instant loan apps but had to pay over Rs 2 lakh as interest and penalties. The three arrested people helped operate four of these apps.
The three arrested were identified as Hemanth Kumar, director of Flash Card Private Limited; V Manjunath, HR manager at Juss IT Technologies in Bengaluru; and Abdul Lauk, Manager of TGHY Trust Rock Private Limited in Bengaluru.
The three companies operated the instant loan apps under the names: Rupee Plus, Kush Cash, Money More and Cash Map. The companies are affiliated with Chinese and Bhutanese nationals, Cyberabad police say.
These companies charged interest rates of up to 35% on the money borrowed and imposed heavy penalties on the insolvent. Police said they would ask Google to remove these loan apps from the Google Play Store. informed PV Padmaja, DCP Balanagar. The police also confiscated laptops and cell phones from the defendants. The police found that these companies had multiple bank accounts for loan disbursement and repayment.
Cyberabad Police made the arrests based on a complaint for assisted suicide filed at the Petbasheerbagh Police Station on January 2. Chandra Mohan, a camp worker, had taken out a loan of Rs 80,000. Although he paid back almost Rs 2 lakh in interest and other fees, he was harassed by these companies for having extra money. Mohan had borrowed from Pan Ban, Cash Map, Red Corp, Rupee Plus, Kush Cash, Fix Cash, Rupee Instant, Money More, Home Credit, Cash Go, and Cash Seed.
The police have charged the three people under Sections 306 (incitement to commit suicide), 420 (fraud), 384 (extortion) of the Indian Criminal Code (IPC) and the Information Technology Act.