Hyderabad: The Enforcement Directorate (ED), Hyderabad zonal office, has filed a prosecution complaint (PC) against several Non-Banking Financial Companies (NBFCs), fintech companies, and individuals involved in the instant loan lending business through various mobile apps.
The PC was filed before the special MSJ Court in Nampally, Hyderabad, under provisions of Prevention of Money Laundering Act (PMLA).The court took cognisance of the complaint on Thursday. The ED investigation was initiated based on 43 FIRs registered between 2020 and 2021 by cyber crime police stations in Cyberabad and Rachakonda. These FIRs were related to various mobile apps and mobile numbers associated with different fintech companies and NBFCs.
The investigation revealed that several fintech companies utilised their funds and entered into agreements with defunct, dormant, and non-performing NBFCs. These entities engaged in short-term lending at exorbitant interest rates, charging excessive processing fees through mobile apps, the ED said.
The mobile loan apps, while sanctioning loans, accessed borrowers’ private data, including images, contact details. This was misused to coerce borrowers into repaying loans. Borrowers were also offered additional loans at higher interest rates through related loan apps to repay existing loans, leading to debt traps. Extortion tactics employed by these companies forced several borrowers to end their lives.
Earlier, ED had issued five provisional attachment orders, seizing properties of fintech companies and NBFCs worth 346.8 crore. Additionally, proceeds of crime amounting to 434 crore in form of bank account balances were frozen during search operations.
We also published the following articles recently
Metrowater officials could previously identify leaks or blocks in pipelines with difficulty. However, they now use a mobile app for efficient detection, thanks to geo-mapping and a newly established GIS monitoring cell. The live GIS system allows real-time updates of pipeline coordinates, facilitating quick identification and integrating data with other departments for improved infrastructure management.
Gold holds a significant cultural value in Kerala, symbolizing wealth and tradition. The gold rate in Kerala fluctuates based on global market trends, rupee values, seasonal demand, and government policies. Gold loans are a popular financing option, with interest rates influenced by credit scores and loan-to-value ratios.
Executives from the World Bank and Asian Development Bank met with Andhra Pradesh chief minister N Chandrababu Naidu to discuss a 15,000 crore loan for capital city Amaravati’s projects. Naidu emphasized that Amaravati is a self-financing, avant-garde city that will attract global investments. He urged quick loan approvals to commence the phased projects already planned.