Explained: how Chinese loan apps flouted RBI rules, committed Rs 903 crore fraud

Updated : Nov 04, 2022 11:14
|
PTI

Police in Hyderabad have busted a Chinese investment fraud of Rs 903 crore with the arrest of 10 people, including a Chinese national.

The police began investigation after a local complained of being cheated after he invested Rs 1.6 lakh in an investment app.

It was found that the money of the local was deposited in the account of a private company with a private bank.

When police located the owner of the bank account, who is a resident of Delhi, he revealed that he opened the bank account on the orders of a Chinese man and that he gave the internet banking user name and password to him.

It was also found that several bank accounts were opened by the Delhi man and his accomplice. The two persons received a commission of Rs 1.2 lakh per banl account.

A large amount of money from 38 virtual bank accounts of the private company went to two money changing companies.

The modus operandi was to use RBI approved money changers to convert illegally gathered funds through investment apps, and transfer them into dollars and then send them abroad.

The investigation showed that two persons who played major role in the fraud are in China.

The Hyderabad police would coordinate with agencies like ED and DRI in view of the serious nature of the fraud.

 

 

 

 

 

scamInvestmentChinese companyjob

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