YSRCP raises instant loan app fraud issue in RS

Last month, two people, including a Chinese national, was arrested for extorting money through instant loan apps

YSRCP member Vijay Sai Reddy raised the issue of instant loan app fraud operated by Chinese companies in India.

Reddy said, "The instant loan app threatens to leak sensitive information and the government should take note of this as most of the apps are operated by Chinese companies."

He said the police arrested only the Indian agents and the companies were operating from China, and were also working without permission of the RBI.

Last month the Intelligence Fusion & Strategic Operations (IFSO) Unit of Delhi Police's Special Cell arrested two persons, including a Chinese national for extorting money from people through instant loan applications, an official said on Wednesday.

The accused have been identified as Chinese national Yu Zhang, the mastermind behind the extortion racket and Vineet Jhaver, a resident of Haryana.

The police said that so far more than Rs 150 crore have been siphoned off through accounts provided by Vineet and Zhang.

In August this year, the IFSO unit had busted various modules of instant loan applications having a Chinese connection, and arrested 22 people for allegedly siphoning off Rs 500 crore to China by the hawala route or by investing in cryptocurrency.