Arrests Made in Rs 230.92 Crore Chinese Loan App Scam

The Enforcement Directorate has arrested four individuals in connection with a money laundering case linked to a Chinese-controlled loan app scam. The investigation revealed the suspects were involved in integrating proceeds from the crime, amounting to Rs 230.92 crore, through over 400 accounts and transferring them to Singapore.

The Enforcement Directorate announced on Friday the arrest of four individuals during a money laundering investigation tied to a Chinese-controlled loan app scam. The federal agency revealed that, under the guidance of a Singaporean citizen, the arrested suspects played a significant role in integrating illicit proceeds totaling Rs 230.92 crore. These funds were acquired through fake loan applications and collected via over 400 mule accounts across India.

According to the ED, the funds were eventually transferred to Singapore through companies controlled by the suspects. The money laundering case originated from multiple police reports filed by victims in Kerala and Haryana, who accused the operators of extortion and blackmail under the pretense of loan facilitation.

The agency's investigation included searches in February last year, leading to the freezing of bank deposits worth more than Rs 123 crore. It was uncovered that the accused misused private data from victims' mobile phones, routing extorted funds through various shell entities' accounts and remitting them outside India, disguised as fake imports through Nium India Pvt. Ltd., a subsidiary of Singapore-based Nium Pte Ltd.

(With inputs from agencies.)