Central Crime Branch (CCB) police detectives dismantled a network of at least 52 companies registered in Benami’s name, allegedly by Chinese nationals who stole from customers after giving loans on mobile apps without any collateral .
Acting on a whistleblower, CCB Economic Offenses Wing raided the offices of Licorise Technology Pvt. Ltd in Munnekolala recently. The company reportedly provided short-term loans on various mobile apps such as Cash Master and Crazy Rupees, and charged a high processing fee of almost half of the loan granted. Those who took advantage of the loans were then charged heavy weekly interest.
When debtors did not pay, the company harassed them by threatening them and sending details of the default and other information to contacts on their cellphones that they would have accessed while making loans on the app, a said the CCB.
Similar cases were reported in Telangana in 2020, where several debtors are said to have ended their lives. Two similar cases were also dismantled in Bengaluru.
The recent raid revealed that there was a network of 52 companies registered in the names of most of the employees working at Licorise Technology Pvt Ltd, without their knowledge. “Employees were encouraged to open an ‘account’ in their name, which many volunteered to do. But unbeknownst to them, companies were registered in their name which in turn engaged in the granting and collection of illegal loans. A labyrinth of companies registered under various names of benami has been created to ensure that the real owner, Chinese nationals, is hidden, ”said a senior police official involved in the investigation.
These companies have established links with non-bank financial companies (NBFCs) registered with the RBI for loan disbursement. “Businesses don’t even offer loans. They are only an intermediary. They get loans from NBFCs, trick customers into charging almost 50% processing fees, and later charge high weekly interest, which is prohibited by law. Thus, on the loan principal provided by Indian NBFCs, debtors are also deceived, harassed for collection and the windfall is transferred out of the country to China, ”the official said.
CCB will now write to the Enforcement Branch, Income Tax Department, Goods and Services Tax Department, Reserve Bank of India and Companies Register, for more in-depth investigations.
The Central Crime Branch arrested Licorise Techonology’s human resources director Kamaraj More, 25, and team leader Darshan Chavan, 21, for threatening debtors.
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