New Delhi [India], January 31 : The Enforcement Directorate has arrested four masterminds in connection with fake chinese loan app scam ongoing across the country, the agency said on Friday.
ED's Kochi Zonal Office arrested the persons namely; Daniel Selvakumar, Director of Xoduz Solutions Pvt Ltd and operator of Tyrannus Technology Pvt Ltd; Allen Samuel, Director of Aprikiwi Solutions Pvt Ltd., Anto Paul Prakash, proprietor of Global Expositions and Infomedia Solutions and the Director of Sozo Technology Pvt Ltd; and Kathiravan Ravi, Director of Future Vision Media Solutions Pvt Ltd on January 30.
https://x.com/dir_ed/status/1885322009049268464
The case originated from 11 First Information Reports (FIRs) filed by victims in Kerala and Haryana that they were extorted in the name of loan facilitation and blackmail for excess repayment.
As per the ED, the loan app operators used to blackmail using the private data hacked from mobile phones of victims while installing their loan app.
"The investigation revealed that such extorted proceeds were routed through various bank accounts of shell entities and ultimately remitted outside India in the guise of fake import of software, digital services, tour services through normal banking channels and Nium India Pvt Ltd (a global remittance facilitating Company), a wholly owned subsidiary of Nium Pte Ltd of Singapore," said the agency in a statement.
ED investigation revealed that "on the instructions of a Singapore citizen, all the suspects played a key role in integration of proceeds of crime to the tune of Rs 230.92 crore, generated through fake app loan scam and collected in more than 400 mule accounts across India and further transfer of such proceeds to Singapore through companies controlled by them."
The agency also conducted extensive searches at over 10 locations across Mumbai, Chennai and Kochi in February 2024 to unearth proceeds of crime and evidence thereof.
During the searches, multiple mobile phones, laptops, and other electronic devices containing substantial incriminating evidence were seized. During search proceedings, an amount to the tune of Rs 123.58 crore were freezed lying in various bank accounts.
Additionally, the ED said that the arrested persons misused the channel of Nium India Pvt Ltd, a global remittance Company.
"Investigation revealed that huge amount of Rs 1,677 crores were remitted by the accused using channel of Nium India Pvt Ltd circumventing various reporting such as Form 15CA/CB by the remitting entity as stipulated under Income Tax Act, 1961," it stated.
Thus, the federal agency said, investigation also revealed major lapses on part of Nium India Pvt Ltd.