Police Busts Fraudulent Instant Loan Company

The Cyberabad crime police today raided a city-based call centre named Cubevo Technology Private Limited (Skyline) that is registered as Skyline Innovations Technologies India Private Limited in Delhi, and arrested four employees of the firm.

The four arrested persons include COO Yi Bai alias Dennis, a Chinese national from Shanghai's Jiangxi; Satyapal Khyalia of Delhi; and Hyderabad-based Aniruddh Malhotra and Murathoti Richie Hemanth Seth.

Reports indicate that company directors Zixia Zhang (another Chinese national) and Umapati alias Ajay are still absconding.

The accused have been arrested for developing 11 instant loan mobile apps including Loan Gram, Cash Train, Cash Bus, AAA Cash, Super Cash, Mint Cash, Happy Cash, Loan Card, Repay One, Money Box and Monkey Box.

The apps reportedly trap borrowers by offering lucrative-sounding loan deals, and then collect huge repayments by levying a host of hidden charges including interest, processing charges, default charges and GST charges.

They reportedly attract potential borrowers by using call centres owned by Skyview. They also reportedly use tele-callers to systematically abuse customers by harassing and threatening them. Borrowers are even blackmailed and threatened with fake legal notices.

Cyberabad Commissioner of Police V C Sajjanar said that the Cyber Crime Police Station had recently registered eight cases of this nature against instant loan apps which had prompted the investigations and led to the arrests.

"The police received a complaint from a borrower on December 17 in which the complainant stated that he had taken a loan of Rs 2,015 for seven days from the app. After the deduction of Rs 415 for GST and processing charges, the company disbursed Rs 1,600 to him on August 25. Soon after, he claimed that he began to receive calls from different mobile numbers advising him to take another instant loan. On their advise, he again took a loan of Rs 1,20,000. Even though he later returned Rs 2,00,000 to the company to repay the loan with interest, he continued to receive calls from tele-callers who would abuse, threaten and blackmail him. Fed up of the harassment, he contacted the police to take necessary action. Based on his complaint, we registered a case and arrested the accused," he added.

The investigations have led to the seizure of a company bank account with Rs 2 crore as well.