Illegal loan app: BOI issues look out circular against Chinese national in Odisha EOW case

The Bureau of Immigration (BOI) has issued a look out circular against Liu Yi, a Chinese national in connection with a case registered by the Economic Offences Wing (EOW), Odisha in connection with cheating through illegal loan apps.

As per reports, the Chinese national used to run many illegal digital loan Apps in India, including Koko loan, Jojo loan, Gold cash loan, Tap credit loan and others. EOW in a release claimed that there are more than 1.5 lakh downloads in one of the Apps.

It is being said that Liu Yi started his illegal business in 2019 from Bangalore. His parent company was Jianbing Technology in Hangzhou in China. Though he is the director of Omlette Technology Private Limited, he also indirectly controls/owns several other companies like- Yellow Tune Technologies Pvt Ltd and Ocean Trading.

“It is suspected that through these Apps lakhs of people across the country, mostly lower middle class, in need of small loans during difficult times of Covid-19 were cheated,” EOW’s release read.

According to EOW, there are two more Chinese nationals who assisted Liu Yi in the scam. Already five accomplices of the Chinese mastermind have been arrested and the EOW has conducted raids with assistance from various state police in Delhi, Mumbai and Bangalore and more than Rs 6.57 crore has been frozen.

Modus operandi of illegal loan App:

Once downloaded in mobile phone, small amounts ranging from Rs 3,000 to Rs 10,000 is credited into the bank account of the customer.

Within a week, the customer/burrower is asked to repay the amount with excessive rate of interest. On denial of paying the amount, the concerned customer is humiliated/ bullied in many ways.

Obscene messages and indecent pictures along with abusive texts in filthy languages are sent on their WhatsApp number as well to his/her contact list.

The recovery process is so humiliating that there are several instances of costumers ending their lives by suicide.

The EOW has received over 100 complaints from Odisha related to abusive activities of illegal loan Apps.