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

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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 the Bureau Chief of the Gurugram bureau at Hindustan Times, where she covers crime, excise, civic agencies, forests and wildlife, real estate, and politics. With over a decade of experience at the organisation, she has reported some of the region’s most impactful stories, known for her deep investigative work and on-ground reporting. Leena has extensively covered major crime cases, systemic lapses and financial irregularities, often exposing civic agency failures and prompting administrative action. Her journalism is driven by accountability, public interest, and a commitment to highlighting issues that shape everyday life in Gurugram.Read More

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