App-based loan fraud: Hyderabad police arrest Bengaluru resident running 9 finance, tech companies

In continuation of their investigation in the instant loan apps harassment cases, the Hyderabad police have arrested one more accused - a resident of Mahadevapura in Bengaluru.

The cyber crime police arrested Chinnabba Rajashekar, director of nine companies involved in loan apps

Rajashekar, 27, is a native of Chittoor in Andhra Pradesh and is the director of Yunwei Technologies Private Limited, Satime Technologies, Reusing Technologies, Pregla Fintech, One Libra Financial Services, Naqiful Technologies, Aojing Technologies, Heiseqian Technologies and Feng Fintech Services.

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All these private companies are connected to money lending apps namely Snapit, ok cash, Mybank, Cash bee, Rupee factory, bubble loan, go cash etc, Joint Commissioner of Hyderabad Police, Avinash Mohanty said.

The Hyderabad cops have so far arrested 21 persons including a Chinese national Zhu Wei alias Lambo. These arrests are apart from the several arrests made by the Cyberabad Police.

Mohanty said that, so far, they have freezed about Rs 300 crore in the accounts associated with the fraudsters. “Efforts are on to arrest the absconding persons who played a key role in the fraud,” the officer stated on Thursday.

The abusive treatment of the defaulters by telecaller agents of app-based loan companies has resulted in the death by suicide of at least three people in Telangana recently.

These companies lure customers into taking more loans at exorbitant charges and later humiliate them for non payments within the stipulated, short periods of time. Dozens of cases were registered, especially under the Hyderabad, Cyberabad, and Rachakonda commissionerates that cover the Telangana capital city expanse.