ED Seizes Assets Worth Rs 19.39 Crore In Loan App Fraud Case

An ED spokesperson said that funds worth valued at Rs 19.39 crore of multiple firms including money from bank accounts and fixed deposits associated with several companies involved in deceptive lending practices, have been confiscated by the central probe agency as part of its crackdown on fraudulent activities linked to loan apps.

Hyderabad: The Enforcement Directorate (ED) in Hyderabad has confiscated assets valued at Rs 19.39 crore as part of its crackdown on fraudulent activities linked to loan apps. The assets seized include money from bank accounts and fixed deposits associated with several companies involved in deceptive lending practices.

Details of the Seizure

In a statement issued on Thursday, an ED spokesperson on said that funds from the accounts of Nimisha Finance India Private Limited, Rajkot Investment Trust Limited, Mahananda Investment Limited, and Buskin Management Consultancy Private Limited were confiscated. These entities were implicated in fraudulent operations involving loan applications as per the ED statement.

Fraudulent Practices and Impact

According to the ED statement, the fraudulent loan apps offered quick and easy loans while simultaneously collecting sensitive personal information from borrowers' cellphones. These loans came with exorbitant interest rates, and borrowers faced threats of having their personal information disclosed if they failed to repay. The psychological pressure from these threats led some victims to take their own lives

Investigation Background

The ED's investigation stems from 118 cases filed by Telangana police against 242 instant loan mobile applications. Complaints from the victims' families triggered the probe. The investigation identified several fraudulent mobile apps, including 'Online Loan,' 'Rupee Bus,' 'Flip Cash,' and 'Rupee Smart,' all linked to Nimisha Finance India Pvt Ltd and Skyline Innovation Technology (India) Pvt Ltd.

Financial Transactions and Findings

The investigation uncovered that Rs 20 crore related to these crimes had been transferred from Nimisha Finance to Rajkot Investment Trust Limited (RITL). The financial links between Skyline Innovation and Rajkot Investment Trust Limited further revealed extensive financial transactions involved in the scam.

The ED officials stated, "We have found that Rs. 20 crores related to those crimes have been transferred from Nimisha to RITL. Consequently, assets worth Rs. 19.39 crores have been confiscated."