Loan apps case: Maharashtra cyber police file common case, invokes Money-Lending Act

Acting on the order of Home Minister Dilip Walse Patil, the Maharashtra cyber police have registered an FIR involving all the instant loan app fraud cases from across the state. The minister had passed the order following a meeting with a mid-day team and top brass of the state police last week.

The cyber cell of the state police have registered the FIR under Sections 420 (cheating) 501 (printing or engraving matter known to be defamatory) 34 (common intention) of the Indian Penal Code, and the relevant Sections of the Information Technology Act and the Maharashtra Money-Lending (Regulation) Act.

Over the past week, officers identified various apps that have been providing instant loans and then harassing the citizens, said police. "We have collected data from various portals and local police, and have identified more than 450 apps so far," said a senior officer of the Maharashtra cyber cell.

Police have reached out to more than 25 complainants so far and a few of them have already given their statement.

Police have got in touch with apps that they have identified so far. Representation pic

The initial FIR was registered after recording the statement of a 28-year-old resident of south Mumbai, who had borrowed Rs 7,000 from an app firm in April and paid back Rs 96,000. "Yet, recovery agents were calling and harassing him. The complainant's relatives were also receiving messages and morphed photographs," the officer said.

In his statement, the complainant said, "I borrowed money from my relatives and friends to pay them [app firm] thinking that the harassment and the embarrassment caused to the family will stop."

Additional Director General of Police (ADGP) Madhukar Pandey, Cyber, has been monitoring the case and coordinating with the concerned stakeholders to ensure that the investigation moves in the right direction.

There are, however, certain hurdles in the way, as state cyber police are facing difficulty convincing the victims to file a complaint.

"We have received over 1,800 [online] complaints and hundreds of more complainants are identified from different portals and with the help of local police, but only few of them coming forward to register FIR," an officer privy to the investigation said.

The cyber police have also identified some accused with the help of technical evidence they gathered last week. "Some targets have been identified and our teams are working on it to make the arrest in the case soon," the officer added.

During the course of the investigation, the cyber police have also learnt that most of the apps providing instant loan service do not have money lending licence, as required under the Maharashtra Money-Lending (Regulation) Act. They are not even registered as a Non-Banking Financial Service (NBFC) with the Reserve Bank of India.

"Some apps are using the name of NBFC(s), claiming that they are connected with them, and luring borrowers," the officer said.

The cyber police have asked the companies running these apps to submit all the documents for verification. "We want to scrutinise the documents before making them an accused in the case," the officer added.

450
No. of suspected illegal apps identified so far

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To file a complaint, victims can get in touch with the cyber police at control.cpaw-mah@gov.in or call on 1930