Block all illegal instant loan apps: Telangana HC directs police chief

The Telangana High Court on Thursday directed Director General of Police M Mahender Reddy to take immediate steps to block illegal instant loan apps. The court said the police should take strong measures to check the loan apps indulging in illegal practices. A division bench, headed by Chief Justice Hima Kohli, gave the direction on a petition seeking action against the apps for harassing borrowers. 

Lawyer Kalyan Deep, who filed the petition, pleaded for stringent action against the apps as their harassment is leading to suicides by borrowers. The court also asked the DGP to submit a report on the activities of loan apps and action taken against them. It also sought a report from Hyderabad, Cyberabad and Rachakonda Police Commissioners about the cases booked in loan apps scam.

It was towards the end of December that the Telangana Police began the crackdown on illegal instant loan apps following suicide by five persons.

The latest suicide was by a victim identified as 36-year-old G Chandra Mohan, a resident of Gundlapochampally in Ranga Reddy district. Mohan, a father of three, was found dead at his home on January 2. According to reports, Chandra Mohan had taken multiple loans from several money lending apps to the tune of Rs 60,000 to 70,000 in October and had defaulted.

As Chandra Mohan could not repay the debt, he was harassed by the lenders who threatened to shame him as a ‘fraud’ to his family and friends in his contact list. The money lenders gain access to the contact list of the borrower once they install these illegal money lending apps.

Director-General of Police Mahender Reddy had said 50 cases were registered in connection with the instant loan apps.

During the last month, more than 30 accused, including four Chinese nationals, were arrested by Hyderabad, Cyberabad and Rachakonda police, the three Commissionerates that cover the Greater Hyderabad.

The first arrests were made on December 22 during the crackdown by Hyderabad and Cyberabad police on five call centres in Hyderabad and Gurugram. The police found in their investigations that the companies were offering small loan amounts through different apps and collecting repayments by way of harassment and blackmailing.

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