HYDERABAD: During their investigation into app-based instant financing, Cyberabad police officials said they identified two Hyderabad-based companies who were operating nine different financing apps.
After receiving complaints a few days ago, police raided the two companies in the city. Cyberabad deputy commissioner of police (crimes) Rohini Priyadarshini said that when the business organisers were questioned, investigators found the companies had developed different apps and had entered into an agreement with Non Banking Financial Companies (NBFCs). The owners of the companies are Hyderabad residents.
“These app developers took money from different NBFCs and in-turn disbursed this to persons who registered on the apps. Recovery of money was done by harassing and intimidating people,’’ Priyadarshini said.
TimesView
Not only are many of these app-based lending services using harsh, coercive methods to recover loans, they are also infringing on the privacy of their borrowers. It is now clear that these apps are preying on the vulnerable in society by offering easy loans and then blackmailing them into clearing the dues. They should not be allowed to operate with such impunity and should be immediately shut down.
The officials said that app organisers have been made accused since they were fully aware that they were collecting exorbitant interest from customers and because intimidation is an offence. Police have served them notice to appear before them for further investigation.
These companies were also operating call centres, to make intimidating calls to people. The companies were sealed and the phones which were used to call the customers were seized by the police. In an earlier instance, cops said that when people at the call centres were spoken to with regard to a complaint, they were defiant towards the police.
The Cyberabad police have also issued a notice to Google informing it to remove apps from Play Store as they are being misused for alleged criminal offences.
App-based finance companies are spread across the country. Officials said that they are verifying whether NBFCs if they have permission from competent authorities.
“We are yet to verify the role of NBFCs to know whether they have any role in this crime. We will know only after verifying the details of their agreement,’’ police said.
Recently, while dealing with Chinese online gambling case, Hyderabad police, in the chargesheet filed in a local court, made a reference to the fact that these online gambling companies diverted money into instant financing through apps. However, in the cases investigated by Cyberabad police, they have not found the Chinese angle till now.
Cyberabad police personnel recently met Reserve Bank of India (RBI) officials who said that they will get back to the police about whether NBFCs can use a third party for disbursement of loans as this is a grey area.
Interestingly, in case their apps are removed, app organisers upload different apps onto Google Play Store.