EOW Arrests Business Company Director in Illegal Digital Loan Enforcement Case

Bhubaneswar: The Economic Offenses Wing (EOW) of the Odisha Crime Branch on Wednesday arrested the Director of M/s Good Start Business Services (P) Limited from a location below Harinagar Police boundaries in New Delhi in an illegal digital loan app case, an official source said today.

The arrested man has been identified as Nitin Mallik. The West Delhi Police provided necessary assistance to the EOW-Odisha team to arrest the accused.

A crime agency press release said Mallik was arrested based on EOW PS Case No-13, Dtd-02.07.2022 U/s 294/384/420/467/468 /471/120-B of IPC, R /w Section 66(D) of the Computers Act 2000.

Following the arrest, the accused Mallik was brought before the Metropolitan Chief Magistrate’s Court, Tis-hazari, New Delhi and was brought to Bhubaneswar on remand for his production before the Sub-divisional Judicial Magistrate ( SDJM), Bhubaneswar.

According to the source, the case was registered on the basis of a complaint filed by Shakti Prasad Dash of Bhubaneswar regarding harassment, extortion and mental torture by debt collectors of digital loan app ‘Kredit Gold ‘ by sending demeaning and abusive messages and transformed photographs, etc.

Acting on the complaint, EOW Inspector Smt Pranati Senapati launched an investigation, which established that the victim Shakti Prasad Dash after downloading the said loan app ‘Kredit Gold’ received an instant loan amount of Rs 9 000 and that it had been credited to his account.

However, just after four days, he received WhatsApp messages and calls to repay Rs 15,627.

Subsequently, Dash also received calls and messages from various cell phone numbers which were traced to M/s Good Start in which Defendant Mallik is a manager. It has further been revealed that M/s Good Start is not registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank.

The company was operating illegally as a digital moneylender.

Meanwhile, in order to contain these types of crimes and raise public awareness, EOW has advised people not to take loans from unregistered and illegal loan apps available on the internet and Google Play Store.

Under the guise of advancing a loan, loan apps access and hack all of the customer’s phone information, which is then used by the company to perpetrate another financial crime. These loan apps also harass customers by not only charging high interest rate but also for non-repayment.

It is relevant to mention that Mallik operated with the connivance of a Chinese mastermind.

In a single app, there are more than 1.5 lakh downloads.

Chinese mastermind LIU YI is suspected to have deceived and extorted thousands of people across the country. It particularly targeted lower middle class people who needed small loans, especially during the difficult time of the Covid outbreak.

In some states, many people have committed suicide after being blackmailed.

The fraudster had started his illegal activity in India in 2019 from Bangalore. Its parent company was Jianbing Technoloy located in the city of Hangzhou in China. He is the director of Omlette Technology Private Limited, but indirectly controls and owns a few other companies.

There are at least two other Chinese who helped LIU YI in his scam.

In this case, the crime control agency has already arrested Chinese mastermind LIU YI, including five of his accomplices. The EOW is in contact with different state police and has also carried out raids in Mumbai, Bangalore and New Delhi.

Over Rs 6.57 Crore has been frozen so far.

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