MeitY blocked 87 illegal loan apps after regulatory review: Govt in Parliament

The Ministry of Corporate Affairs said that regulatory action is taken from time to time against companies involved in online lending through loan apps

Published on: Dec 2, 2025, 19:31:09 IST

By Sejal Sharma

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The government has informed Parliament that the Ministry of Electronics and Information Technology (MeitY) has blocked 87 illegal loan lending applications under Section 69A of the Information Technology Act, 2000.

The government said that inspections and compliance checks are ongoing and monitored regularly. (Representational image)

This information came in a written reply to an unstarred question in the Lok Sabha on December 1, directed to the Minister of Corporate Affairs. The question asked whether the government plans to define “shell companies” under the Companies Act, 2013, and what steps are being taken to improve monitoring and prevent illegal activities by non-functional firms.

The Ministry of Corporate Affairs said that “regulatory action… is taken from time to time” against companies involved in online lending through loan apps. It added that whenever violations are found, “appropriate legal action is taken.” The ministry also clarified that while actions are being taken against non-compliant firms, the term “Shell Companies” has not been defined in the Companies Act, 2013, and there is no proposal to introduce such a definition.

The answer also highlighted the broader enforcement mechanism, stating that the government orders “Inquiries, Inspections, Investigations respectively on the basis of complaints, references and information regarding non-compliances.” Suitable action, including striking off companies, is taken based on these findings. It thereafter mentioned in the same reply that MeitY has blocked 87 illegal loan apps under Section 69A, which empowers this ministry to block public access to online content.

The reply noted that inspections and compliance checks are ongoing and monitored regularly.

ABOUT THE AUTHOR
Sejal Sharma
I am a technology policy reporter with the National Political Bureau at Hindustan Times, based in New Delhi. I cover digital policy and the intersection of technology and society, focusing mainly on what's happening in India. My beat often involves tracking platform regulation, privacy, internet curbs, and the real-world impact of digital rules, among other things. Can usually be found reading government notifications so that you don't have to. I cover three key ministries: Ministry of Electronics and Information Technology (MeitY), Ministry of Communications, and the Ministry of Information and Broadcasting (I&B). I am originally from New Delhi and a graduate of the Asian College of Journalism, Chennai. Over the past nine years, I have worked across television, digital and print media with The Secretariat, CNN-News18, Tiranga TV, Interesting Engineering, and now Hindustan Times. Although I am not on X, I can be reached at sejal.sharma@hindustantimes.com for tips, a chat or book recommendations. I respond fast, usually within a couple of hours. Outside of work, I enjoy playing badminton and driving my car. I am a firm believer that every trip — work or leisure — deserves a fridge magnet.Read More

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