Chinese national arrested in app-based loan racket case

Cyberabad cops arrest Chinese national in app-based loan racket case; 'mastermind' Chinese man absconding

The abusive treatment of the defaulters by agents of these companies has resulted in the death by suicide of at least three people in the state recently

A Chinese national is among the fresh arrests made by the Telangana police in connection with the app-based money lending gangs' activities.

The abusive treatment of the defaulters by agents of these companies has resulted in the death by suicide of at least three people in the state recently.

Dozens of cases were registered in Telangana, especially under the Hyderabad, Cyberabad, and Rachakonda commissionerates that cover the state capital city's expanse.

At least 17 people were already arrested already by the Hyderabad and Cyberabad police, following raids on call centres at Hyderabad and Gurugram, NCR run by these companies to first lure customers into taking more loans at exorbitant charges and later humiliate them for nonpayments.

Also Read | App-based money lending atrocities: Hyderabad police probe Chinese role

On Friday, Cyberabad police commissioner VC Sajjanar said that they have raided another company's call center “Cubevo Technology Private Limited” operating in Hyderabad, with head office in NCR named “Skyline Innovations Technologies India Private Limited.”

The company directors Zixia Zhang, a Chinese national, and Umapati alias Ajay, of Delhi, developed 11 applications offering instant loans to individuals and collect huge repayments including high interests, processing charges, GST, default penalty charges.

While the mastermind Zhang, a Chinese national and Umapati alias Ajay of Delhi are absconding, Cyberabad police nabbed Yi Bai @ Dennis, a native of Jiangxi, Shanghai, and three Indians - Satyapal Khyalia and Aniruddh Malhotra of Rajasthan, and Murathoti Richie of Kadapa.

Police seized two laptops, four cell phones, and a bank account with Rs two crore.

Bai is the Chief Operating Officer of Xikai Holding, a Singapore based sister concern of Skyline. He came to India on Business Visa in February and worked as the business development manager of Skyline. He and Satyapal identify new locations all over India and set up call centers. Malhotra and Murathoti manage two call centres in Hyderabad.

Loan Gram, Cash Train, Cash Bus, AAA Cash, Super Cash, Mint Cash, Happy Cash, Loan Card, Repay One, Money Box, Monkey box are some of the apps developed, operated by the accused.

These applications collect id proofs, PAN, KYC documents, bank account details of the customers. Following verification, small loans like Rs 2000, Rs 5000 are disbursed to applicants' accounts after debiting the processing charges and GST, interest advance etc.

The loan period is in two categories of 7 and 15 days. After the due date, the customer is categorized under various buckets (S-0, S-1, S-2, S-3, M2, M3, X) and harassment increases with the duration.

Sajjanar said that apart from systematic abusing, threatening of the defaulters through call centers run by them, borrowers are also blackmailed with fake legal notices sent to them and their family members.