Blackmail syndicate busted, duped 2,000 of crores: Delhi Police

The six men, who were arrested from different parts of India over the past five days, had floated at least seven fake companies, the bank accounts of which logged transactions of nearly ₹350 crore

Delhi Police’s intelligence fusion and strategic operations (IFSO) unit on Monday announced that it arrested six people and has busted a gang that allegedly blackmailed nearly 2,000 people of several crores of rupees.

The six suspects in police custody on Monday. (HT Photo)

The six men, who were arrested from different parts of India over the past five days, had floated at least seven fake companies, the bank accounts of which logged transactions (inflow and outflow) of nearly ₹350 crore – including cryptocurrency exchanges -- in less than a month, officers said.

The arrested people were identified as Mustajab Gulam Mohammed Naviwala, 32, and Anisbai Ashrafbhai Vinchhi, 51 from Surat in Gujarat, Gokul Biswas, 53, from Nadia in West Bengal, and three Delhi residents named Ashok, 36, Balwant, 39, and Nitin, 24. Of them, Nitin had earlier worked in a Chinese loan app company as a team leader and he was well versed with the working of loan apps and recovery process, officers said.

The possibility that the fake companies and bank accounts may have been used by any international syndicates involved in instant loan frauds has not been ruled out by investigators, said deputy commissioner of police (IFSO) Prashant Gautam.

“The suspected transactions of around ₹350 crore and dubious crypto exchange have come on record during our investigation. We are taking the probe forward to ascertain where the remaining money went and how. Seven cellphones and one laptop have been recovered from the arrested men. 10 accounts belonging to them and having ₹60 lakh have been frozen,” Gautam said.

Detailing the gang’s modus operandi, the DCP said the members of the syndicate offered short-term loans to users at “very low interest rates” through an app called Cash Advance. Using this app, the officer said, the gang would gain access to the personal data of the clients, but after giving the money through digital modes, they would raise the interest rates exorbitantly, and even after the loan was repaid, they would demand more money from the borrowers or their relatives by threatening them in various ways like sharing their morphed pictures.

Gautam said that in April, Jai Goyal, a resident of Delhi’s Model Town, filed a complaint and alleged that some people were extorting and blackmailing the public at large on the pretext of providing instant loans. Goyal had taken a loan of around ₹19,000 and had already repaid it but even then, he was being blackmailed that his mobile phone data had been compromised and sensitive information would be leaked if he did not pay more money, said Gautam.

The IFSO officials began their inquiry into Goyal’s complaint and searched the national cybercrime reporting portal (NCRP), where they found that 1,977 complaints against the loan app were lodged from across the country, with 102 from Delhi alone. Accordingly, a case of extortion, cheating and criminal conspiracy was registered at the Special Cell police station and investigation was taken up, police said.

During the probe, investigators said, they came across seven fake companies having seven linked bank accounts. The relevant details from the banks and the registration of the companies and their proprietorships were collected. However, the directors of these alleged companies were not traceable, they said.

“The team conducted comprehensive analysis and carried out field investigation and finally succeeded in tracing the accused persons from different locations. Thereafter, simultaneous raids were conducted in Gujarat, West Bengal, and Delhi and six suspects were arrested,” Gautam said.