A Chinese-owned network was cheating on gullible borrowers in India and using Bengaluru as a hub for their business, police said.
The Dark Network uses mobile apps to attract borrowers. He had also hired agents, promising them Rs 4,000 as a monthly incentive.
On November 24, the Central Crime Branch arrested Kamaraj More, head of human resources, and Darshan Chowhan, team leader, employed by Licorice Technology, allegedly a Chinese-owned company.
They have used the names of 52 companies and opened 80 bank accounts in the past two years, police said.
A police team raided company offices, working with 100 employees, in Munnekolala, near Marathahalli, and confiscated 83 computers. The city’s police commissioner, Kamal Pant, told Metrolife that Chinese companies are using Indian employees and using them as a front.
âThey open a business and appoint directors and directors to run the show, but never show up in person,â he says.
How they work
Jagannath Rai, Deputy Police Commissioner (Economic Crimes Wing), who investigated the racketeering, says Chinese companies are using mobile apps with catchy names.
âYou can download these apps from the Google Play Store. As soon as you download the app, it asks you to access all your contacts and other details. It is only after you have given your consent that you can continue, âexplains Rai.
The sanction of the loan is easy and painless, but the catch is in what comes next. âAn exorbitant amount is being charged as a processing fee. For example, if 5,000 Rs is sanctioned, 1,000 Rs is deducted from the processing fee. If you don’t pay, the call center staff will call several times, âsays Rai.
The hiring documentation is hard to blame, but their methods are unethical, according to police.
âFraudsters collect Aadhaar and PAN cards from the staff they employ,â says Rai. When borrowers default, companies use bogus arrest warrants and send humiliating messages to all contacts on the contact list.
âThey have access to your personal data and use it against you. They use your photos on all kinds of websites and send them to people on your contact list to shame you, âPant explains.
In Hyderabad last year, three people committed suicide after being drawn into such racketeering. âOnce these businesses made money, they closed their doors and continued on. The paperwork is perfect and they make sure they don’t run into any legal hurdles, âhe says.
The borrowers are largely motorists, cart vendors, and people who run small businesses.
âCompanies first lend them Rs 500 and ask them to download the application. Borrowers only realize they’ve been duped when interest keeps climbing and the loan is never fully repaid. It’s like they’re in debt for life, âsays Rai.
A high-ranking police officer claims that the cash loans indirectly fuel the growth of the underworld.
âIf you happen to visit the town market in the wee hours of the morning, you will see pawn shops giving loans at 10% interest per day. Today, the business has grown online, âhe says.
The loan mafia thrives because people easily get loans without any paperwork, he says. “Loan
is endemic in India because the
the culture is such. Every wedding, baptism ceremony and anniversary is celebrated in a grand way, âhe adds.
Why these loan applications are dangerous
They collect all your phone contacts.
They have access to the photos on your phone.
They harass your family if you default.
They call your friends and knock you down.
They post your photos on unsavory websites.