The Sessions Court in Chennai remanded them to judicial custody till November 29, the central agency said. ED had initiated a probe based on FIRs filed on complaints regarding loan apps that charge exorbitant rates of interest, processing fees (20%-30% of amount), and threaten borrowers who fail to repay. The probe revealed that the Chinese nationals had formed two companies — Toucolor Technologies Private Limited and Truekindle Technology Private Limited — in 2020. They had also forced two employees to become dummy directors, while they ran the entire operation from the background. Borrowers were forced to take fresh loans if they couldn’t repay, pushing them into a debt trap.

Source: Indian Express November 20, 2024 02:56 UTC