Hyderabad: The Law Enforcement (ED) Directorate investigating cases of Chinese rogue loan applications and their money laundering activities objected to the bail application of Pavitra Pradip Walvekar, the promoter manager based in Pune of the finance and investment company Kudos. ED had arrested Pradip for helping Chinese money launderers provide short-term loans while charging exorbitant interest and using coercive collection methods.
According to ED lawyer Anjali Agarwal, Kudos, a Non-Banking Financial Company (NBFC) registered with RBI with total share capital not exceeding Rs 10 crore, was found to have provided loans of more than Rs 2 220 crore to dozens of people. .
ED in its investigation found that several Chinese fintech lending app companies were using Kudos as a legal cover for their illegal funding. These Chinese companies have raked in more than Rs 560 crore in profit in a short time with the help of Kudos for loans lasting no more than one or two weeks.
The ED further informed the court that up to 43 FIRs have been registered by the Cyber Crime Police in Hyderabad and Cyberabad against several individuals and call centers involved in instant personal loans. ED had launched a money laundering investigation in January 2021.
“A look at the 43 FIRs reveals that no less than 365 loan applications are run by various fintech companies whose roots are in China. “Chinese apps. If Pradip is released on bail now, he will continue the conspiracy and erase evidence from these fintech web zones and app records,” the ED lawyer told HC.
In all FIRs, plaintiffs have been granted loans through various instant loan applications charging interest rates of around 36% per annum, as well as high processing fees and GST. These loan apps were used to manage non-bank finances without valid licenses from RBI and various government authorities.
These companies collected customers’ personal details and used them to threaten and blackmail them into paying dues.
Callers also told victims to take out a new loan from apps to pay off existing loans, the ED said.
Judge K Lalitha, who heard the plaintiff’s plea and ED’s argument, posted the case to January 24 for a rehearing.
According to ED lawyer Anjali Agarwal, Kudos, a Non-Banking Financial Company (NBFC) registered with RBI with total share capital not exceeding Rs 10 crore, was found to have provided loans of more than Rs 2 220 crore to dozens of people. .
ED in its investigation found that several Chinese fintech lending app companies were using Kudos as a legal cover for their illegal funding. These Chinese companies have raked in more than Rs 560 crore in profit in a short time with the help of Kudos for loans lasting no more than one or two weeks.
The ED further informed the court that up to 43 FIRs have been registered by the Cyber Crime Police in Hyderabad and Cyberabad against several individuals and call centers involved in instant personal loans. ED had launched a money laundering investigation in January 2021.
“A look at the 43 FIRs reveals that no less than 365 loan applications are run by various fintech companies whose roots are in China. “Chinese apps. If Pradip is released on bail now, he will continue the conspiracy and erase evidence from these fintech web zones and app records,” the ED lawyer told HC.
In all FIRs, plaintiffs have been granted loans through various instant loan applications charging interest rates of around 36% per annum, as well as high processing fees and GST. These loan apps were used to manage non-bank finances without valid licenses from RBI and various government authorities.
These companies collected customers’ personal details and used them to threaten and blackmail them into paying dues.
Callers also told victims to take out a new loan from apps to pay off existing loans, the ED said.
Judge K Lalitha, who heard the plaintiff’s plea and ED’s argument, posted the case to January 24 for a rehearing.
