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ED arrests one in Rs 2,200 crore PMLA case

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 The Enforcement Directorate (ED) on Saturday said that it has arrested Pavitra Pradip Walvekar, the promoter director cum CEO of Kudos Finance and Investment Private Limited, an NBFC company in connection with a prevention of money laundering case.

His arrest was made at Hyderabad by a team of ED officials. The probe agency produced him before a special court and said that he wasn’t needed for further interrogation. After this the court remanded Pavitra to 15 days judicial custody.

The ED has been conducting money laundering investigation against a number of Indian NBFC companies which are in the business of instant personal loans via mobile apps.

The ED has found that various fintech companies backed by Chinese funds have made agreements with these NBFC companies for providing instant personal micro loans of term ranging from 7 days to 14 days.

Ms Kudos NBFC ‘purportedly’ engages FinTech (digital lending partners) Companies as a Service Provider to assist in identifying prospective customers, verifying their eligibility, collection of information/documents, conducting due diligence, collecting pre-disbursement documents, arranging execution of the loan agreement, assisting with collections and recovery of principal and interest payments and attending service requests/product related queries for the retail loans offered by the Company.

Although it is projected that the NBFC is engaging Fintech companies for the above activities, but in reality they are allowing the Fintech companies to misuse the valuable NBFC license of Kudos.

“Ms Kudos has a paltry Net Owned Fund (NOF), but it is taking huge amount as ‘security deposits’ and then opening separate Merchant ID (MID) with payment gateways for each fintech app and then depositing this security in the MID of the respective fintech app,” said an ED official.

Kudos company has no mobile app of its own. It is not involved in the lending business at all. It has miniscule staff and is blindly allowing fintech companies to operate at the back of MOU between self (NBFC) and Fintech Mobile app companies. Thus, the entire lending operation is being done by the fintech app from its own funds. Kudos is only lending its license and the fintech apps are the ones acting like the real NBFCs and doing end to end micro lending and reaping majority of the benefits. In return Kudos is taking a commission without doing any due diligence or hard work.

“Entire decisions regarding fixation of interest rate, processing fee were taken by fintech companies and these companies were operating on the basis of instructions from Chinese beneficial owners. They capture customers’ data by getting access to their mobile contacts, media. In order to obtain more profits and to maintain high recovery rate, their call centres resorted to harsh recovery measures by using abusive language to entire phone list and contacts and misuse of social media privileges. Unable to bear the level of harassment, certain people have committed suicides,” said an ED official.

The official said that at the time of crediting the loan amount, the apps would deduct 15-25 per cent of the amount as processing fee and on the remaining amount they were charging very high interest rate.

“Fund trail investigation done by ED revealed that despite having NOF of only Rs 10 crore, Kudos circulated loans over Rs 2,200 crore in its name and it was entirely funded by 39 fintech companies who are now not responding to summons and have shutdown their operations and are absconding,” said the ED official.

In the entire business, fintech companies have gained a total profit of around Rs 544 crore and Kudos has gained a profit of around Rs 24 crore.

This entire arrangement is in complete violation of the RBI guidelines on NBFCs and thus, the entire profit of Rs 568 crore is nothing but proceeds of crime.

The source of funds with the fintech companies is also suspect and is being investigated.

Despite repeated opportunities, Pavitra Pradip Walvekar was not revealing the real identity and beneficial owners of the 39 apps with whom they were in business for more than a year.

The ED has alleged that instead of cooperating with the investigation, he had been making active attempts to obstruct the free and fair investigation.

Crime

Thane: 55-Year-Old Man Attempts Suicide After Mumbai Police Arrive To Arrest Him For Sexually Assaulting Minor Girl In Badlapur

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Thane: A 55-year-old man allegedly attempted suicide after a Mumbai Police team arrived at his residence in Badlapur, Thane, on Tuesday night to arrest him for the alleged sexual assault of a minor girl. The girl is the daughter of a bedridden man whom the accused had been hired to care for.

A police officer investigating the sexual assault case said on Thursday, “The man was immediately rushed to the nearby private hospital, where he lay unconscious for almost 36 hours, and currently his condition is stable.

According to the police complaint, the minor girl’s father suffered a paralytic attack last year. The accused was hired in May to care for him from 8 am to 8 pm. During this time, the man allegedly began sexually assaulting the minor and made obscene remarks after her mother left for work.

Despite being warned by the girl’s mother, the man continued to harass her. On July 28, he allegedly entered her bedroom and harassed her again, prompting the girl and her mother to approach the police.

On Tuesday, the police traced the accused’s location to Badlapur, prompting a team consisting of two assistant police inspectors and three to four constables to reach the spot. Around 10 PM, the man locked himself inside his house and began threatening to end his life. Despite the police’s efforts to calm him down, he allegedly attempted suicide. Officers then broke open the door and rushed him to the hospital, said an officer involved in the investigation.

The Police registered a case against the accused under relevant sections of the Bharatiya Nyaya Sanhita and the Protection of Children from Sexual Offences (POCSO) Act on July 29, following a complaint by the minor girl and her mother, who reported the harassment that occurred on July 28, as reported.

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Crime

Anti-Human Trafficking Unit Nabs 30-Year-Old For Trafficking Women In Navi Mumbai

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Navi Mumbai: The Anti-Human Trafficking Unit (AHTU) has arrested a 30-year-old man for allegedly running a sex racket using mobile phones to share photographs of women with potential clients and arranging their services. Two women were rescued during the operation, which took place near a hotel in the APMC area of Navi Mumbai.

The arrested accused, identified as Rahul Lakhmeshwar Mahto, was caught red-handed on the night of August 4 after he arrived in a taxi near Hotel Fantasy Residency in Sector 19C, APMC, with two women. He had allegedly arranged a deal with a decoy customer and accepted Rs 4,000 in cash for sexual services. Once the transaction was completed, the decoy gave the pre-decided signal, following which the AHTC team conducted a raid and apprehended Mahto.

According to police officials, Mahto was part of an online prostitution racket operating across Mumbai and Navi Mumbai. The AHTC had earlier received intelligence about the gang’s activities and accordingly laid a trap under the guidance of Senior Police Inspector Prithviraj Ghorpade. The team, including API Yogesh Deshmukh and Police Constable Anil Mandoḷe, posed as customers to initiate the bust.

Investigations revealed that the two rescued women had been sent for prostitution by two other agents, identified as Kamesh and Kurban Ansari, who are currently absconding.

“We have registered a case under relevant sections of the Immoral Traffic (Prevention) Act at the APMC Police Station. We are continuing efforts to locate and apprehend the remaining members of the trafficking network,” a police officer from AHTU said.

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Crime

Drug Racket Used Shirt Photo As Code To Move ₹434 Crore Worth Of Mephedrone From Mysuru To Mumbai

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Mumbai: A startling detail has emerged in the investigation of the Rs434 crore drug lab busted in Mysuru, Karnataka—the accused allegedly used a coded method involving shirt photos to facilitate the transport of MD drugs to Mumbai. The Sakinaka police revealed that the operation was divided between two independent groups: one focused on manufacturing the drugs and the other handling distribution. In a calculated move to ensure anonymity and minimise risk, members of each group were kept unaware of their counterparts’ identities.

The contraband was distributed across various locations using a network of street-level dealers. The entire transportation route operated on the ground—no air or rail travel was involved. This ensured lower surveillance risks and easier movement across states.

A police officer stated, “When an individual went to collect the drugs, he did not share his contact number or name. A middleman sent the drug collector’s shirt photo to the manufacturer. The drug collector and manufacturer never exchanged names or contact details. The delivery was made solely based on the shirt photo.”

According to the police, once the MD (Mephedrone) drugs were produced at the Mysuru unit, a courier from there would travel by bus to Bengaluru. Simultaneously, a member of the Mumbai syndicate would also arrive in Bengaluru. To confirm identity, the Mumbai operative would send a photo of his shirt via WhatsApp. The courier, after matching the shirt pattern, would transfer the consignment. The Mumbai gang member would then return to the city with the narcotics—again by road.

The police suspect that this busted lab is part of a much broader international network, possibly linked to organised crime syndicates. As the investigation widens, authorities believe further arrests and connections may emerge in the coming days.

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