Crime
ED arrests one in Rs 2,200 crore PMLA case
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
Bihar: Robbers posing as police steal goats purchased under CM’s scheme

Patna, Dec 12: A shocking incident has emerged from Samastipur’s Vidyapati police station area, where four men posing as police personnel stole goats purchased under Chief Minister Nitish Kumar’s Women’s Employment Scheme.
The incident occurred on Friday in Dhaneshwarpur South Panchayat, Ward No. 9, when the victim, Champa Devi and her family were asleep.
Suddenly, a four-wheeler pulled up outside their home, and the men inside woke the family.
Claiming they were police officials searching for a liquor mafia suspect, the men forcibly entered the premises.
Inside, they took away four goats that Champa Devi had bought using the Rs 10,000 financial assistance she received under the Women’s Employment Scheme.
When she tried to stop them, the accused reportedly brandished a pistol, abused her, and threatened to kill her.
“They said they were police and that a liquor mafia had passed that way. They showed a pistol and told us to move aside. Fearing for our lives, we stepped back. They loaded all four goats into their vehicle and fled,” said Champa Devi.
The same group allegedly targeted another house nearby, stealing three more goats.
According to the victims, they too had purchased the goats with government assistance.
Before the villagers could understand what was happening, the thieves fled in their vehicle with all seven goats.
Locals have demanded strict police action. However, Vidyapati police said they are awaiting a formal complaint to begin proceedings.
“A report of theft has been received, but no application has been filed yet. Action will be taken as soon as we receive it. The gang involved is being investigated,” said Suraj Kumar, Police Officer, Vidyapati Police Station.
The area has witnessed several such goat thefts in the past. Thieves often arrive in four-wheelers—not on motorcycles or on foot—making quick escapes difficult to track.
In an earlier incident a few years ago, villagers even held a DSP hostage after mistaking him for a goat thief.
Under Chief Minister Nitish Kumar’s Women’s Employment Scheme, women are provided Rs 10,000 each to start income-generating activities.
So far, 1.56 lakh women have received the amount. After six months of evaluation, beneficiaries showing positive outcomes become eligible for Rs 2 lakh in additional support to expand their ventures.
Crime
Thane Crime Branch Busts Mephedrone Racket, Seizes Drugs, Firearm And Arrests Two In High-Intensity Raid

Thane: The Anti-Extortion Squad of the Crime Branch, Thane, acting on secret information, raided a gang involved in the illegal sale of Mephedrone (M.D.) and arrested two accused. Police seized 108.8 grams of Mephedrone worth Rs 10.88 lakh, a country-made pistol, and a live cartridge—totaling Rs 11.41 lakh.
According to the sequence of events, on the night of December 8 around 10:50 PM, the police team raided Shri Gajanan Residency in Adavali-Dhokali, Kalyan East, and caught Aakib Iqbal Bagwan (33). A large quantity of M.D. and an unlicensed country-made pistol were recovered from his possession. Further probe revealed that Bagwan was already wanted in two NDPS cases at Bazarpeth Police Station, Kalyan.
During interrogation, Bagwan disclosed that the pistol was supplied to him by Bharat Shatrughna Yadav. Using technical investigation and confidential sources, the police detained Yadav as well. A live cartridge was recovered from him during the search.
A case has been registered against both the accused at Manpada Police Station under relevant sections of the NDPS Act, the Indian Arms Act, and the Maharashtra Police Act.
The operation was carried out under the guidance of DCP Amarsingh Jadhav and ACP Vinay Ghorpade by Senior Police Inspector Shailesh Salvi, Assistant Police Inspector Sunil Tarmale, and team members Bhosle, Kanade, Thakur, Rathod, Shinde, Patil, Gaikwad, Jadhav, Gadge, Pavaskar, Hivare, Waykar, Shejwal, and Bhosle.
Crime
CBI court sentences ex-village pradhan, fair price shopkeeper to 10 year-jail term in SGRY fraud case

New Delhi, Dec 12: A special CBI court in Lucknow has sentenced two individuals — a former village pradhan and a fair-price shopkeeper — to 10 years of rigorous imprisonment in a major corruption case involving misappropriation of over Rs one crore under the Sampurna Grameen Rozgar Yojna (SGRY), the agency said on Friday.
The verdict was delivered on Thursday. According to an official release, the court convicted Satya Narayan Prasad Patel, then village pradhan, and Shahnawaj Alam, then fair-price shopkeeper (kotedar), imposing a total fine of Rs 55,000 on the two.
The court held them guilty of causing wrongful loss to the government exchequer by siphoning off cash and foodgrains allocated for rural employment and welfare.
The case dates to 2006, when Narhi Police Station in Ballia district registered an FIR alleging large-scale irregularities in SGRY distribution.
The Central Bureau of Investigation (CBI) took over the probe on October 31, 2008 and registered a case against 172 accused persons, including officials responsible for implementing the scheme at the village and district levels.
Investigators found that the accused caused a wrongful loss of Rs 65 lakh in cash and misappropriated foodgrain worth Rs 45.26 lakh, preparing forged records and using fraudulent means to divert government resources intended for the rural poor.
“It was alleged that the accused persons had caused wrongful loss to the Government Exchequer to the tune of Rs 65.00 lakh in cash and foodgrain worth Rs 45.26 lakh and corresponding gain to themselves by cheating, fraud, and preparing forged documents under Sampurna Grameen Rozgar Yojna (SGRY),” the CBI said in its press note.
After a detailed investigation, the CBI filed a charge sheet on November 10, 2010, against three individuals: Satyendra Singh Gangwar, then Chief Finance and Accounts Officer of the District Rural Development Agency (DRDA) Ballia; Satya Narayan Prasad Patel; and Shahnawaj Alam.
Following the trial, the CBI court convicted Patel and Alam but acquitted Gangwar of all charges.
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