Three Malaysian nationals were arrested by the Andhra Pradesh police in connection with a loan app scam on Wednesday, May 24. The foreign nationals have been charged in a case of extortion and abetment of suicide of an engineering student, S Hari Krishna, who had faced harassment from loan app agents after borrowing an amount of Rs 10,000. The case was registered at Kadiyam police station in Rajahmundry of East Godavari district earlier this month, following Hari Krishna’s death on May 5. To nab the accused, East Godavari police said they posed as loan app agents themselves and interacted with the Malaysia-based accused for several days before enticing them to travel to India, only to arrest them immediately upon arrival.
Hari Krishna had borrowed Rs 10,000 through a loan app a few months ago, and although he managed to return the loan with interest, he was harassed to pay much more. Eventually, the student died by suicide on May 5, following threats from the loan recovery agents that his morphed images, in compromising positions, would be shared with his contacts, if he did not pay up as demanded by the lenders. The kin of the deceased lodged a complaint at the Kadiyam police station following which the police started their investigation.
This is a common modus operandi among loan apps, and Andhra Pradesh has witnessed several suicides due to harassment from loan app agents over the past couple of years. Loan apps, which have sprouted across the country and grew popular during the COVID-19 pandemic, offer quick, instant loans at humongous interest rates but without requiring extensive verification. However, to avail of these loans, users typically need to agree to share their personal data on their phones, such as access to contacts and their image gallery, before the money can be transferred. Later, in case the user defaults on the payment of the loan, or there is a delayed payment, recovery methods often include contacting people on the contact list of the victim and informing them about the loan, morphing victims’ images into nude photos, etc.
Police investigation revealed that those who were blackmailing Hari Krishna were based in Malaysia, and the Andhra police, on a tip from their Tamil Nadu counterparts, identified them and interacted with them for more than 20 days, while posing as loan app agents themselves. The covert police officers also enticed the Malaysians to travel to India.
On arrival at Chennai, the three suspects were promptly arrested. “We followed leads from Tamil Nadu, and we also got leads from other states,” Superintendent of Police (SP) Ch Sudhir Kumar Reddy told TNM.
Through the investigation, police found that loan app agents operating in India provide their accomplices with multiple Indian savings and current bank accounts, through which the accused operate from abroad. The agents and the financial operators discuss operations via Telegram, WeChat or WhatsApp because of which most of the agents never discover the identity of the main accused with whom they are transacting, police said.
The accused in the Kadiyam case were identified as Yong Lui Xing, Choo Kai Lun, and Thiagarajan Kasi, and were booked charged under sections 306 (abetment of suicide), 504 (intentional insult with intent to provoke breach of the peace), 509 (word, gesture or act intended to insult the modesty of a woman), 384 (punishment for extortion), and 386 (extortion by putting a person in fear of death or grievous hurt), read with 34 of the Indian Penal Code (IPC), as well as section 67 (punishment for publishing or transmitting obscene material in electronic form) of the Information Technology Act.
In a press release explaining the modus operandi of the loan app scam, the police explained that the accused operated from Singapore, Malaysia, Hong Kong, China and other countries. The group was allegedly making at least Rs 50 crore per month, according to the police.
A senior police officer told TNM, “These apps are not usually available on the Google Play Store, but they are downloaded through Telegram links. We advise people to avail of loans on Reserve Bank of India (RBI)-approved apps alone. The legal channels might involve some complicated processes, but they only protect the consumer.”
He added that the apps usually seek permissions to access the phone’s contacts, photo gallery, etc. “Their sole aim is extortion. They not only morph pictures of the victim but also of their family members with devious intent, inevitably causing a lot of distress to the debtor and resulting in suicide,” he said.
If you are aware of anyone facing mental health issues or feeling suicidal, please provide help. Here are some helpline numbers of suicide prevention organisations that can offer emotional support to individuals and families.
Tamil Nadu
State health department's suicide helpline: 104
Sneha Suicide Prevention Centre - 044-24640050 (listed as the sole suicide prevention helpline in Tamil Nadu)
Andhra Pradesh
Life Suicide Prevention: 78930 78930
Roshni: 9166202000, 9127848584
Karnataka
Sahai (24-hour): 080 65000111, 080 65000222
Kerala
Maithri: 0484 2540530
Chaithram: 0484 2361161
Both are 24-hour helpline numbers.
Telangana
State government's suicide prevention (tollfree): 104
Roshni: 040 66202000, 6620200
SEVA: 09441778290, 040 27504682 (between 9 am and 7 pm)
Aasara offers support to individuals and families during an emotional crisis, for those dealing with mental health issues and suicidal ideation, and to those undergoing trauma after the suicide of a loved one.
24x7 Helpline: 9820466726
Click here for working helplines across India.