CCB busts 'coercive' loan recovery racket run by Chinese microfinance firms

The Central Crime Branch (CCB) has arrested a three-member gang involved in frauds by micro-finance firms that functioned on mobile apps.

Three complaints connected to the financing companies were registered with the cybercrime police recently. The arrested are Syed Ahmed, 33, from New Guddadahalli, Syed Irfan, 26, from BTM Layout 2nd Stage, and Aditya Senapati, 25, from Ramagondanahalli, Varthur.

The complaints stated that the companies charged exorbitant interest, demanded money after clearing the loans, harassed, abused, and made threatening phone calls.

The CCB raided a company called Acepearl Services Pvt Ltd in Koramangala and learnt that other firms named Higeki Serviced Pvt Ltd, ExceedWell Service Pvt Ltd, MascotStar Serviced Pvt Ltd and Aqua Steller Pvt Ltd were functioning in the same building and raided them.

Police said the trio gave a confession that all the companies are Chinese. The loan was paid to customers through Chinese apps like Money Day, Paisa Pay, Loan Time, Rupee Day, Rupee Kart, and also in cash. To recover the loan amount, a contract has been given to call centres to make abusive and threatening calls to the customers.

Police have seized 35 laptops, 200 basic mobile phones, eight checkbooks, 18 smartphones, 30 SIM cards, and nine seals. The arrested suspects were made directors of each company.

Sandeep Patil, Joint Commissioner of Police (Crime), said they had information about the involvement of two Chinese nationals in the fraud and were making efforts to nab them.