The Central Crime Branch (CCB) of the Bengaluru Police has filed FIRs against 35 companies in the city that are allegedly running illegal mobile app loan businesses. According to the CCB, they are owned by Chinese nationals though locals are shown as directors on official records.
A probe was taken up following a complaint lodged by officials attached to the Ministry of Corporate Affairs , Registrar of Companies, with the Bengaluru Police Commissioner seeking legal action against the companies on Monday. “As the case has inter-State ramifications, it was handed over to the CCB for a detailed investigation. As many as seven FIRs have been filed against the companies that are operating in and around Bengaluru,” police officers said.
According to a senior CCB police officer, the MCA, which probed the matter, found that the owners of these companies are Chinese nationals. “They are not based in India, but are managing the show from abroad. They hired local persons as employees who are shown as directors and senior executives at the time of registration with the ROC,” said the CCB officer.
Through the apps, they offer quick loans and charge exorbitant interest rates on a weekly basis. Call centre executives are hired to intimidate and blackmail borrowers if they fail to repay the loan on time. This is not only illegal but is also in violation of Reserve Bank of India guidelines said officials.
The firms and their operations are already being probed by different central agencies and efforts are on to track down the kingpins of these companies. “However, at the local level, the CCB initiated a probe and detained several persons who are working as directors and senior executives of these companies. We questioned them to ascertain the modalities and to know how the companies operate exactly,” said the senior CCB officer.
