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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

KEM Hospital student Sejal Pawar submits written apology after viral remarks on cadavers

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Mumbai, June 12: Sejal Pawar, a medical student at Mumbai’s King Edward Memorial (KEM) Hospital, has submitted a written apology to the institution after a video of her making controversial remarks about cadavers went viral on social media, triggering widespread criticism and legal action.

Hospital sources said senior doctors were deeply upset by Pawar’s comments, particularly because cadavers are voluntarily donated for medical education and are regarded with the utmost respect by the medical fraternity.

According to hospital authorities, Pawar has not been suspended, and no disciplinary action, such as suspension, has been taken against her so far. However, officials indicated that while the institution does not intend to be excessively harsh, it will deal with the matter seriously.

The senior doctors of the hospital have told her that her statement on social media has hurt them a lot, sources said, adding that the issue concerns the dignity accorded to body donors who make medical education possible.

Pawar, who hails from Pune, came under intense scrutiny after a video clip from a public programme went viral online. In the clip, she allegedly made objectionable remarks related to the private parts of cadavers while discussing a sensitive medical education topic in a light-hearted manner.

The controversy prompted strong backlash on social media and led to the registration of an FIR against her. Maharashtra Cyber Police has also initiated action in the matter.

Taking cognisance of the incident, KEM Hospital ordered an internal inquiry and constituted a committee to examine the issue. The hospital administration directed the panel to submit its report at the earliest.

Amid mounting criticism and institutional scrutiny, earlier, Pawar issued a public apology through a detailed post on Instagram.

“Recently, a video clip of mine has gone viral on social media. After watching the video again, I realised how much my words hurt people’s sentiments,” she said in a video post.

She acknowledged that the subject she spoke about was highly sensitive and said she never intended to offend anyone.

“I am not going to justify it, never going to take the wrong side. I wanted to come here and make a public apology. I take full responsibility for my mistake,” she said.

Calling the episode a major learning experience, Pawar added that as a student, she had learned an important lesson and would ensure that such an incident is never repeated in the future.

The hospital’s inquiry report is awaited, while authorities continue to examine the circumstances surrounding the viral video and its impact on public sentiment and medical ethics.

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Crime

Woman arrested at Mumbai airport for smuggling drugs worth Rs 11.82 crore from Bangkok

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Mumbai, June 12: In a major anti-narcotics operation, the Customs Department has arrested a 28-year-old woman at Mumbai’s Chhatrapati Shivaji Maharaj International Airport for allegedly attempting to smuggle a large quantity of hydroponic weed into the country. The seized contraband, weighing more than 11 kg, is estimated to be worth Rs 11.82 crore in the international market.

According to Customs officials, the woman arrived in Mumbai on a flight from Bangkok and came under suspicion during routine surveillance and passenger profiling. A detailed examination of her luggage led to the recovery of 12 vacuum-sealed transparent plastic packets concealed inside her trolley bag.

The packets were found to contain hydroponic weed, a high-grade form of cannabis. Officials said a total of 11.824 kg of the narcotic substance was seized during the operation. The accused, who reportedly worked as a relationship manager at a private company, was taken into custody following the recovery.

A case has been registered against her under the provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act. She was subsequently produced before a court, which remanded her to judicial custody.

The seizure is part of a series of recent operations by Customs authorities aimed at curbing international drug trafficking through Indian airports.

Earlier, on June 8, customs officials at Delhi’s Indira Gandhi International (IGI) Airport had foiled a major narcotics smuggling attempt by seizing 15.38 kg of suspected hydroponic weed concealed inside two geysers. Acting on specific intelligence inputs and passenger profiling, officers intercepted two passengers who had arrived from Kuala Lumpur on Flight D7-182. The passengers were stopped after crossing the Green Channel, and a detailed inspection led to the recovery of the contraband.

In another significant case on May 23, Customs officials at IGI Airport had intercepted two Thai nationals arriving from Bangkok on flight AI-2356 after they crossed the Customs Green Channel. Based on profiling inputs and suspicious travel patterns, officers carried out a detailed examination of their baggage.

The inspection resulted in the recovery of six vacuum-sealed packets suspected to contain hydroponic weed. Of the total seizure, approximately 29 kg was recovered from one passenger’s baggage, while around 19 kg was recovered from the second passenger.

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Crime

Delhi Police bust auto-lifters gang, arrest six

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New Delhi, June 12: In a major crackdown on motor vehicle theft and habitual offenders, Delhi Police have arrested six accused persons and recovered 15 stolen two-wheelers in a series of coordinated operations carried out across multiple police stations.

According to an official press release, the operations were conducted by teams of Delhi Police West District, including Police Station Tilak Nagar, AATS/West District, PS Mayapuri and PP Madipur/PS Punjabi Bagh. The drive also led to the resolution of 11 motor vehicle theft cases and recovery of one illegal weapon.

“West District Police cracks down on auto-lifters & habitual property offenders; 06 accused arrested, 15 stolen two-wheelers recovered, 11 cases worked out,” the press release stated.

The police said the action was part of a sustained drive against “motor vehicle theft, property offences and habitual criminals” using technical surveillance, secret information and field intelligence.

During the operations, “a total of six accused persons were apprehended and fifteen stolen two-wheelers, along with one illegal button-actuated knife, were recovered,” the release said.

In one of the key cases, police arrested Gurpreet Singh @ Lalli, described as a “notorious auto-lifter and BC of PS Tilak Nagar”, following a trap near M-Block Park, Najafgarh Road. Police recovered two stolen motorcycles and one scooty from him. The accused also led to the recovery of another stolen motorcycle during interrogation.

In another major operation, AATS/West District apprehended Md. Saddam and Suraj near ESI Metro Station Parking, Rajouri Garden, while they were travelling on a stolen Honda Activa. Their interrogation led to the recovery of six additional stolen two-wheelers.

Police said the accused were found to be supplying stolen vehicles to a “Mewati gang”, and further investigation is underway to trace the wider syndicate.

In a separate case, Police Station Mayapuri solved a motorcycle theft within three days by analysing CCTV footage and technical inputs. Two accused were arrested from Rohini, leading to the recovery of four stolen motorcycles linked to multiple police station cases.

In another incident, vigilant staff of Police Post Madipur apprehended Rajeev Gupta near Jheel Park after he attempted to flee. A stolen scooty and a button-actuated knife were recovered from his possession.

The West District Police said the overall operation resulted in the arrest of six accused, recovery of 11 motorcycles and four scooties, and registration of one Arms Act case along with 11 motor vehicle theft cases being worked out.

The police described the action as the result of “professional investigation, field intelligence and vigilant policing” aimed at curbing street crime and improving public safety.

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