EOW freezes Rs 1.45 crores in illegal digital loan case

Bhubaneshwar: Economic Offense Wing (EOW) Bhubaneswar froze an amount of Rs 1.45 crore from the accused Nitin Malik, Director of M/s Right Start Business Pvt. Ltd., who was arrested on July 13 in a case related to the illegal operation of lending apps. The said amount was in the accounts of HDFC Bank and IDFC First Bank.

The case had been registered on July 2 based on the report submitted by Pranati Senapati, Inspector, EOW, who was investigating an allegation by Sakti Prasad Dash of Bhubaneswar regarding harassment/extortion/mental torture by Digital Loan recovery officers App “Kredit Gold” by sending humiliating / abusive messages / transformed photographs, etc.

EOW Bhubaneswar had received a series of complaints from victims and the Reserve Bank of India regarding the illegal operation of lending apps which are not registered as NBFC under the Reserve Bank of India (RBI) Act.

M/s Good Start Business Pvt. ltd. and M/s Right Start Business Pvt. ltd. of which the accused Nitin Malik is the director, are not registered as an NBFC with RBI. The companies operate illegally as a digital lender. It is suspected that this international gang runs at least 10 of these illegal loan applications.

It is worth mentioning that there are more than one lakh downloads of “Kredit Gold” app. Defendant Nitin Malik became the director of M/s Good Start Business Pvt. ltd. and M/s Right Start Business Pvt. Ltd. at the instance/connivance of certain Chinese masterminds/bosses.

The main purpose of the said company is to purchase and operate virtual phone numbers of BSNL, Airtel and Vodafone to be used to execute and facilitate loan and recovery through different loan apps. Nitin Malik was in direct and regular contact with at least three Chinese nationals and used to get huge sum/salary for this job.

Defendant Nitin remains in custody. Another defendant, Neerav Gupta, was also arrested in this case and is currently in custody. The investigation of the case is in progress.

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