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Chinese-run illegal loan company arrested in Bengaluru

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Karnataka police have broken a loan racket run by two Chinese nationals involved in fraudulent money transactions and lending people out at exorbitant processing fees and unreasonably high interest rates. The defendants involved in the loan racketeering also harassed clients after granting large amounts of loans for breaking “laws”. Cops arrested two Indian employees of the firm in the case.

Joint Police Commissioner (Crime) Sandeep Patil on Friday reported that Chinese nationals run a company that provides loans at high rates to individuals. Customers who took out the loans from Chinese nationals were then harassed and told that they had broken “the laws.”

Patil said the investigation found that Chinese nationals leading the racketeering opened bank accounts using the names of their Indian staff. He said the accused used these bank accounts with Indian names to conduct fraudulent transactions and transfer millions of rupees to China. The racket was operated under the name Licorice Technology Private Limited in Marathalli, Bengaluru. According to Zaubacorp, the two directors of the company are Shaik Abdul Rasheed and Ankita Karamchand Loya.

According to reports, the Economic Crimes Wing of the Central Crime Branch (CCB) raided the offices of Licorise Technology Pvt. Ltd. in Munnekolala and dismantled a network of around 52 companies registered under Benami names run by Chinese nationals. The two arrested defendants were identified as human resources manager Kamaraj More (25) and team leader Darshan Chouhan (21).

The company used apps like Cash Master and Crazy Rupees to provide short-term loans and charged large amounts as the loan processing fee, almost half of the loan amount given.

In addition, the investigation revealed that the names of employees working for the firm Licorise Technology Pvt. Ltd. were used to open bank accounts and then businesses were registered in the names of those employees. Chinese nationals had collected documents such as Aadhaar and PAN cards from staff and registered 5-6 companies in their name. No less than 52 companies have been registered in the name of the staff and accounts have been opened in private banks. Interest paid by borrowers was credited to these accounts. Police said that according to the preliminary investigation, millions of rupees were sent to China through online transfers from these accounts.

A senior police official noted, “Employees were encouraged to open an ‘account’ in their name, which many volunteered to do. But unbeknownst to them, companies were registered in their name which in turn engaged in the granting and collection of illegal loans. A maze of companies registered under various benami names has been created to ensure that the real owner, Chinese nationals, is hidden. ”

Apparently, the companies acted as intermediaries to secure these loans and had ties to non-bank financial companies (NBFCs) registered with the RBI. The official said: “Companies don’t even offer loans. They are only an intermediary. They get loans from NBFCs, trick customers into charging almost 50% processing fees, and later charge high weekly interest, which is prohibited by law. Thus, on the loan principal provided by Indian NBFCs, debtors are also deceived, harassed for collection and the windfall is transferred from the country to China.

Police said although two people have been arrested and 83 computers seized, efforts are underway to catch the fleeing Chinese nationals.

The CWB will seek assistance from the Enforcement Branch, Department of Income Tax, Department of Goods and Services Tax, Reserve Bank of India and Companies Registry for further investigation into the case.