Instant loan app cases: Director of financial firm arrested

·1-min read

Hyderabad, Apr 28 (PTI): A director of a financial services firm, connected to a money-lending app, has been arrested in Bengaluruin connection with a probe into instant app-based lenders allegedly harassing borrowers, Hyderabad police said on Wednesday.

In continuation of the arrests made in such cases, cyber crime police on Tuesday arrested the 24-year-old accused,who is one of thedirectors of a financial services company, a press release from the city police said.

On further investigation, police identified the accounts associated to all the fraudulent money-lending companies and froze about Rs 400 crore, the release said.

The Telangana police, who had launched a crackdown against instant money-lending apps firms, said the lending companies, through instant loan apps, offer loans to people and levy huge interest and processing charges, among others.

They then resort to systematically 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 State police have registered over 50 cases and arrested over 30 people, including fourChinesenationals, so far even as the Enforcement Directorate is also probing into the FIRs. PTI VVK NVG NVG