The Enforcement Directorate (ED), which is conducting a probe into the Chinese loan applications scam case, learnt during its investigation that the apps’ creators had cheated a number of people during the Covid phase, which led to many challenges, including financial crisis and loss of jobs.
The Chinese loan apps offered microloans to millions of jobless people and then recovered the amount from them by blackmailing them on various pretexts.
A source involved in the probe said all this happened due to ‘weaker’ rules and regulations.
A number of women who had taken loans were threatened that their names and photos would be uploaded on porn sites if they did not repay with entire interest along with the penalty amounts.
The accused had accessed the contact details of those who took loans and sent messages to their relatives, friends and known persons, portraying them as thieves.
It was also a tactic to make them take a loan from another Chinese loan app.
A few apps which were behind this were Money Box, Need Rupee, My Bank, Loan Gram, Coco Cash, Panda Rupee and Cash Pot. These were controlled and managed by Chinese nationals based in Hong Kong and in other cities.
After investigation, the ED learnt that the two main accused — Qu Yang Peng and ‘Mr. Lail’ had visited India.
They took the help of some Indian nationals and opened firms while the Indians had no idea about their malicious intent.
“During enquiries, it emerged that these entities are operated by Chinese persons. They used forged documents of Indians and made them dummy directors of those entities while generating proceeds of crime,” the ED had earlier said.
As many as 18 FIRs were registered by Cyber Crime Police Station, Bengaluru against numerous entities related to Chinese nationals.
The ED conducted its probe on the basis of these FIRs.
“The accused running Chinese apps used to make a WhatsApp group of the contact details of the victim. The women contacts were sent objectionable messages. All the contacts of the victim were called by their agents who would say that the loan-taker made them guarantors. This was the modus-operandi opted by Chinese nationals to extort money from Indians,” the source said.
