Odisha EOW freezes Rs 1.45 Cr in illegal digital loan deal
Bhubaneswar: The Economic Offenses Wing (EOW) of Odisha Police has frozen Rs.1.45 crores in the bank accounts of Right Start Business Pvt Ltd director Nitin Malik, who is in jail after being arrested in July in an illegal digital loan case.
The case was filed following allegations of harassment, extortion and mental torture by debt collectors of digital lending app “Kredit Gold” by sending demeaning and abusive messages and tweaked photographs.
The EOW had received a series of complaints from victims and the Reserve Bank of India (RBI) regarding the illegal operation of lending apps which are not registered as NBFCs under the RBI Act.
Good Start Business Pvt Ltd and Right Start Business Pvt Ltd of which the accused Nitin Malik is the director, are not registered as NBFCs 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’s worth mentioning that there are over a million downloads of the “Kredit Gold” app, EOW said in a press release.
The accused became the director of Good Start Business Pvt. Ltd and Right Start Business Pvt. ltd. at the request and with the connivance of certain Chinese brains/bosses.
The main purpose of the said company is to buy and operate virtual phone numbers of BSNL, Airtel and Vodafone to be used to execute and facilitate loan and recovery through different loan apps. Malik was in direct and regular contact with at least three Chinese nationals and used to get a huge sum/salary for this work.
The accused was arrested in July and remains in custody. Another defendant, Neerav Gupta, was also arrested in this case and is currently in custody.