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Odisha police arrest two from Udupi in fake loan application scam

Bhubaneswar, June 11 (IANS): The Economic Offenses Wing (EOW) of the Odisha Police has arrested two more defendants – Rakshith and Sushanth for their alleged involvement in defrauding people through fake loan mobile apps, police said on Saturday.

Rakshith and Sushanth, both residents of Udupi district, Karnataka, were arrested in Bhubaneswar and taken to court on Saturday, EOW officials said.

The defendants were deceiving people by setting up illegal front companies named Mudmate Technologies Private Limited, Yellow Tune Technologies Private Limited and Pinkleaf Aryan Communications Private Limited.

Police said the two defendants acted as directors of shell companies to facilitate the illegal loan transaction and recovery process through illegal digital loan apps. They were doing this in connivance and collaboration with many other shell companies like IWT-India etc.

They also ran a Bengaluru call center which used to make threatening and humiliating calls and messages to loan victims and their contacts.

They leaked a lot of important information that points to a very complex and well-organized racket, the details of which are under investigation, officials said.

Earlier, the EOW arrested three people for allegedly deceiving people through a fake lending mobile app. The police authority had also asked Google to remove 45 illegal lending apps from its Play Store.