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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

‘Rise against your govt, army for encouraging terrorism,’ Sunni cleric’s appeal to Pakistanis

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Lucknow, April 24: In a strong condemnation of the Pahalgam terror attack, senior Sunni cleric and Imam of Aishbagh Eidgah, Maulana Khalid Rashid Firangi Mahali, on Thursday called on the people of Pakistan to rise against their government and military for facilitating acts of terror on Indian soil.

The remarks come after 26 people, most of them tourists, were gunned down in a brutal targeted terror attack in Jammu and Kashmir’s Baisaran Valley near Pahalgam on Tuesday.

The Resistance Front, a Pakistan-based terror outfit and offshoot of the proscribed Lashkar-e-Taiba, is suspected to be behind the massacre.

Speaking to Media, Firangi Mahali said, “The people of Pakistan should understand that no one will support such activities. They should raise their voices against their own government and army, which are encouraging these acts of terrorism.”

The Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, announced a series of stringent measures in response to the attack.

These include the suspension of the Indus Waters Treaty, closure of the Attari-Wagah border, cancellation of the SAARC Visa Exemption Scheme (SVES) for Pakistani nationals, expulsion of Pakistan’s military attaches from New Delhi and a reduction in diplomatic staff at both High Commissions.

Calling these actions “necessary and timely,” Firangi Mahali stated, “The horrific incident of terrorism in Pahalgam has been condemned in the harshest terms. This tragic event has shaken the entire country. The steps taken by the Government of India — whether on the water agreement, diplomatic expulsions, or visa cancellations — are absolutely appropriate.”

Appealing for national unity, he urged political parties to come together on a single platform in support of the government’s decisions.

“This is not the time for political division. All parties must stand united so that a positive image of national solidarity is conveyed internationally,” he said.

The cleric also warned against communalising the tragedy. “My appeal to fellow Indians is not to view this terror incident through a religious lens. No religion condones violence or terrorism,” he said.

“Some of the posts circulating on social media are sending out a very negative message. In this hour of crisis, every Indian — regardless of religion or political affiliation — must stand together,” he added.

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Security forces release sketches, photos of terrorists who carried out Pahalgam attack

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Srinagar, April 23: Security forces on Wednesday released a photograph and sketches of terrorists suspected to be responsible for the Pahalgam attack in which 26 civilians were killed and several others were injured on Tuesday.

Three terrorists suspected to have carried out the dastardly attack have been identified as Asif Fuji, Suleman Shah and Abu Talha.

The attackers, believed to be members of The Resistance Front (TRF), an offshoot of the banned terror group Lashkar-e-Taiba (LeT), opened fire on tourists at Baisaran meadow in Pahalgam area, 6 kms away from Pahalgam town.

Security forces said at least five to six terrorists, wearing camouflage outfits and kurta pyjamas, came to Baisaran meadow from the dense pine forest surrounding the Baisaran meadow and opened fire with AK-47 rifles.

The group included Pakistani terrorists, who infiltrated the Valley just days before the attack, Intelligence sources said.

Intelligence agencies have identified Saifullah Kasuri, alias Khalid, a top LeT commander, as the mastermind behind the massacre.

Security forces have launched a massive anti-terror operation and deployed helicopters to spot the terrorists who took advantage of the forest cover to flee the spot.

Preliminary forensic analysis and testimonies of survivors indicate that the terrorists used military grade weapons and advanced communication devices, which indicates definite external logistical support.

The probe also found that the terrorists wore body cams and helmet-mounted cameras to record the entire sequence of events.

The attackers came with full preparation and had stocked up dry fruits and medicines.

Sources said the terrorists also did a recce of Pahalgam with the help of some locals.

Eyewitnesses said that while two terrorists spoke in Pashto (indicating Pakistani origin), two of them were locals (Adil and Asif). The local terrorists are from Bijbhera and Tral.

The precision and planning of the attack also points to the involvement of trained handlers and not local amateurs.

According to Intelligence sources, digital footprints of the attackers were traced to safe houses in Muzaffarabad and Karachi, strengthening cross-border terror link evidence.

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Crime

WBSSC recruitment: Calcutta HC to hear contempt petition against Bengal govt today

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Kolkata, April 23: The Calcutta High Court will hear the contempt petition against the West Bengal government in connection with the cash for job case on Wednesday.

The Calcutta High Court’s divisional bench of Justice Debangsu Basak and Justice Shabbar Rashidi will hear the contempt petition against the state government for failing to implement the Supreme Court’s order.

The state government is supposed to tell the court why it is taking so long to implement the Supreme Court’s order.

The Central Bureau of Investigation (CBI) is also supposed to clarify to the same division bench on why their investigating officials have not yet completed the process of interrogation of those candidates who have already been identified as “tainted”.

Notably, the job losers’ protest in front of the West Bengal School Service Commission (WBSSC) office continued for the third day on Wednesday. They are seeking the publication of lists segregating “genuine” and “tainted” candidates.

In a major development, the protesters allowed WBSSC chairman Siddhartha Majumdar, stuck in his office for the last 45 hours as all the entry and exit gates of the commission’s office were blocked since the beginning of their protests, to leave the office on Wednesday morning.

Last year, the bench had cancelled 25,753 teaching and non-teaching jobs, which is the entire panel of WBSSC for 2016. The state government approached the Supreme Court challenging the order.

Earlier this month, the Supreme Court division bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar upheld the order of the Calcutta High Court last year and also accepted the observation that the entire panel had to be cancelled because of the state government and the commission’s failure to segregate the “genuine” candidates from the “tainted” ones.

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