Director of nine companies linked to money lending apps held

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Hyderabad, March 11 (PTI) A 27-year-old man has been arrested in connection with the ongoing investigation against instant app-based money lenders accused of harassing borrowers in Telangana over repayment.

In continuation of the arrests made in instant loan app cases, the city police arrested the accused, who is the director of nine companies which are connected to money lending apps, a release from Hyderabad police said on Thursday.

During further investigation, police identified the accounts associated to the fraudsters and freezed about Rs 300 crores.

Efforts are being made to arrest the absconding accused persons who played a key role in this fraud.

According to Telangana police, the lending companies, through instant loan apps, offer loans to people and levy huge interest and processing charges, among others.

They then resort to systematic abusing, harassing and threatening the defaulters through the call centres operating from across the country.

Six cases of suicides, due to harassment by such companies were reported in Telangana since December 2020.

The Telangana police has registered over 50 cases and arrested over 30 people including four Chinese nationals so far even as the Enforcement Directorate is also probing these FIRs. PTI VVK ROH ROH