Software engg’s death throws up dark side of ‘easy loan’ apps

Four days after a 28-year-old software engineer in Hyderabad allegedly took his own life, police suspect he may been a victim of harassment by mobile phone app companies

Published on: Dec 22, 2020, 23:08:05 IST

By Leena Dhankhar, Gurugram

Prefer HTon Google

Share via

Copy link

Four days after a 28-year-old software engineer in Hyderabad allegedly took his own life, police suspect he may been a victim of harassment by mobile phone app companies in Gurugram that offered micro loans. If the borrower failed to pay, these companies would extract information from the phone and brand the person as a fraudster to their contacts, said police.

Hyderabad Police, which is investigating the case, raided two offices in the city on Monday, arrested five persons and booked them for abetment.

According to police, the victim had borrowed ₹8 lakh from an app that promised quick loans. When Covid-19 hit the country, the man lost his job and could not meet the repayment deadlines. With interest, the man owed the app company ₹11 lakh.

Police said he was harassed with many calls demanding repayment and soon got to know that several of his contacts had received messages branding him a “fraudster”.

Hyderabad Police had received other similar complaints too and their investigation revealed there were around 30 such apps owned by four companies operating from Gurugram and Hyderabad, but registered in Jakarta, Indonesia. The police investigation said that often, users would unwittingly provide these companies access to contacts, pictures, location and the device memory that would be a pre-condition to using the app.

On Tuesday, police raided two call centres in Udyov Vihar Phase 2 that was staffed by nearly 100 people. Police seized systems to recover data and to establish if the apps were misusing customer’s data. Similar raids were conducted in Hyderabad call centres too

Gurugram Commissioner of Police (CP) KK Rao said they were not involved in the investigation but provided support to Hyderabad police. “These app aggregators start calling the victim’s family and friends, demanding repayment leading to harassment,” he said. Police said they could not comment on any regulatory mechanisms over these apps.

Hyderabad Police could not be reached for comment.

ABOUT THE AUTHOR
Leena Dhankhar
Leena Dhankhar is Senior Editor and Bureau Chief, Gurugram, at Hindustan Times, where she has spent over 17 years chronicling the transformation of one of India's fastest-growing urban regions. From starting her career as a crime reporter to leading the Gurugram bureau, her journalism has been defined by investigative reporting, in-depth storytelling and an unwavering focus on public interest. Over nearly two decades, she has reported extensively across crime, politics, civic governance, elections, real estate, environment, courts, sports, education and entertainment, covering Gurugram, Faridabad, Nuh and Palwal. Her reporting has exposed several major scams and systemic failures, including insurance frauds, waste management irregularities, illegal arms manufacturing units in Nuh, illegal mining in the Aravallis, organised crime networks and governance lapses affecting millions of residents. Known for her investigative work and exclusive stories, Leena has reported on high-impact national issues, including the Nicaragua charter flight carrying Indian migrants that was turned back amid allegations of human trafficking, exposing the growing network of illegal immigration rackets. Her work has also focused on gang wars, prison administration, juvenile crime, women and child protection systems, the functioning of the Juvenile Justice Board and Child Welfare Committee, and environmental challenges such as pollution, waterlogging and deteriorating civic infrastructure. Beyond hard news, Leena has extensively documented Haryana's rich heritage, forests and wildlife, bringing attention to the state's historical landmarks, biodiversity, conservation efforts and ecological challenges through immersive reportage and feature writing. Her journalism has consistently gone beyond breaking news. She has documented Gurugram's rapid urbanisation through long-form narratives and enterprise reporting on issues ranging from pothole-ridden roads, flooding and waste management to the changing social fabric of India's Millennium City. She also writes widely read feature columns, including The Outsider, Changemaker, and Concern for Gurugram, profiling people, places and ideas shaping the city's identity. Leena is the author of Gurugram School Murder, published by Juggernaut Books, a deeply reported account of one of India's most high-profile school murder investigations. She is currently working on her second book, an investigative work exploring some of India's most significant scams and fraud investigations. Beyond print journalism, she has expanded her storytelling through public speaking and digital media. She is a TEDx speaker and has produced podcasts exploring Gurugram's transformation, civic challenges and untold stories. Her work reflects a commitment to narrative journalism that combines rigorous reporting with compelling storytelling. A law graduate with an MBA in Human Resources, Leena brings a multidisciplinary perspective to her reporting, particularly on governance, public policy and legal affairs. She has travelled extensively across India to pursue investigative assignments, often reporting from remote locations and conflict-prone areas in search of stories that matter.Read More