New Delhi: On a communication from the Ministry of Home Affairs, the Ministry of Electronics and Information Technology (MeitY) has initiated the process to ban and block 138 betting apps and 94 loan lending apps with Chinese links on an “urgent” and “emergency” basis, news agency ANI reported official sources as saying.


As per sources cited by ANI, the MHA recommended the MeitY this week to ban and block these apps, and the Ministry subsequently initiated the process as per communication. The decision was taken after confirming that these apps attract Section 69 of the IT Act as they contain material that is prejudicial to the sovereignty and integrity of India.


Last year, the Intelligence Fusion & Strategic Operations (IFSO) Unit of Delhi Police's Special Cell arrested two persons including a Chinese national for extorting money from people through instant loan applications, as per news agency IANS.


In August 2022, the IFSO unit busted various modules of instant loan applications having a Chinese connection and arrested 22 people for allegedly siphoning off Rs 500 crore to China by the hawala route or by investing in cryptocurrency.


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ED Raids For Probe Linked To Alleged Financial Irregularities


Last year, the Enforcement Directorate also carried out raids against some payment gateways and others in connection with its ongoing money laundering probe linked to alleged financial irregularities by instant app-based loan companies “controlled” by Chinese persons.


The federal agency, on September 2, 2022, raided the Bengaluru-located premises of payment gateways like Paytm, Razorpay and Cashfree as part of this investigation.


These payment gateway firms have been in the crosshairs of the ED action since 2020 soon after the COVID-19 pandemic broke in the country.


The ED initiated a probe under the criminal sections of the Prevention of Money Laundering Act (PMLA) following a number of cases wherein gullible debtors ended their lives in various states and the police stated they were being coerced and harassed by these loan app (application) companies by publicising their personal details available in their phones and by undertaking high-handed methods.


It was alleged that the companies sourced all personal data of the loan-taker at the time downloading of these apps on their phones, even as their interest rates were “usurious”, news agency PTI reported.


As per IANS, the Delhi Police said that multiple complaints were being received at the NCRP portal that instant loan applications are disbursing loans at higher rates and even after repayment of the loan, they are extorting money using morphed nude pictures.


"IFSO took cognizance of the same and started analyzing the complaints at NCRP. During the analysis of the complaints, it was found that more than 100 such apps are involved in the loan and extortion racket," said Prashant Gautam, Deputy Commissioner of Police (IFSO).


"It was also found that all the apps were seeking access to personal data from the user. After obtaining access to personal data like contacts, chats, messages and images of the user, the same were being uploaded to the servers in India and abroad," said the DCP, as quoted by IANS.


"Applications were developed in the garb of loan providing apps. These applications were malicious in nature and sought all permissions from the user. Applications were hosted on Google Play and websites. Users in need of a loan downloaded the applications by granting all the permissions. Soon after this, the application started uploading the contact lists, chats, images of the user to the servers hosted in China and other areas," said the DCP.


"This data was also sold to different private firms. The customers were receiving calls from different numbers (procured on fake IDs) forcing them to pay more and more by threatening them using the morphed pictures. Due to fear and stigma, the users began paying them money in different bank accounts opened against fake IDs," said the official.


"The money collected was diverted to specific bank accounts and then sent out of the country through Hawala or after purchasing cryptocurrencies. People who were in dire need of a small loan ranging from Rs 5,000 to Rs 10,000 were being forced to pay even in lakhs," said the official.


According to the SCP, the police found that the network is spread across Delhi, Karnataka, Maharashtra, Uttar Pradesh, Gujarat, and other parts of the country.