On Thursday, the Telangana High Court ordered the state police to take prompt and appropriate action against instant app-based money lenders accused of harassing borrowers who default on loans with increased interest rates.
When a lawyer, Kalyan Dileep Sunkara, filed a plea to outlaw all illegal online loan applications, a division bench led by Chief Justice Hima Kohli ordered the state DGP to block or remove such apps from Google Playstore.
The court also ordered the police to apprehend anyone who operate such apps and provide fast loans.
The petitioner had asked the court to order the state government to prohibit any illicit online loan apps from being downloaded from the Google Play store.
The court adjourned the case until March 18 and ordered the police to file a status report on rapid loan app approvals, cases filed, and the investigation.
According to the authorities, lending organisations provide loans to people via rapid loan applications and demand exorbitant interest and processing fees, among other things.
The defaulters are then subjected to systematic abuse, harassment, and threats via call centres located around the country.
Since December 2020, six suicides have been reported in Telangana as a result of harassment by such companies.
Even as the Enforcement Directorate investigates these FIRs, over 50 charges have been filed and over 30 people, including four Chinese nationals, have been arrested.
A preliminary investigation of the financial transactions of online loan app firms revealed 1.4 crore transactions worth approximately Rs 21,000 crore, according to police. They have also employed experts for data analysis to analyse the enormous data.
Several allegations allege that the firms stole sensitive data such as contacts and images from customers' mobile phones and used them to slander or blackmail them into repaying the loan. Cases have been filed in several police stations across the state.
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