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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

Vasai Shocker: Married Woman, Allegedly Kills Lover, Dumps Body In Blue Drum With Husband’s Help; 2 Arrested So Far

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Thane: A 26-year-old engineer from Mumbra was allegedly beaten to death by his married lover, her husband and two accomplices before his body was stuffed inside a drum and dumped in a secluded drain in Vasai, police said on Friday.

The Mumbra Police Station arrested the 25-year-old woman and her brother in connection with the murder, while her husband and another accused remain absconding. The deceased was identified as Arbaz Maqsood Ali Khan, a resident of Mumbra who worked as an engineer with a real estate developer in Dombivli.

According to police, Khan had been in a relationship since 2021 with Mehajabeen Khatun Ekran Sheikh, a resident of Vasai. Investigators said the two frequently communicated and exchanged romantic messages, but over time Mehajabeen allegedly began demanding money from Khan, who regularly transferred funds to her account.

Police said the relationship deteriorated after Khan allegedly stopped sending her monthly payments, following which Mehajabeen allegedly conspired with her husband Hasan Sheikh, her brother Tariq Sheikh and Tariq’s friend Mojjam Pathan to murder him.

Cops stated Khan had gone to Dadar on April 3 to collect cash related to his company’s work but never returned home. After his father filed a missing complaint, police analysed his call detail records and mobile location data, which allegedly matched Mehajabeen’s location in Vasai on the day he disappeared.

Police also found that Khan had transferred Rs 50,000 to Mehajabeen a day before he went missing. During interrogation, Mehajabeen initially denied involvement but later allegedly confessed to the crime, police said. Cops claimed she had called Khan to her residence in the Bhoidapada area of Vasai, where an argument allegedly broke out over money.

According to police, the accused found no valuables on Khan and later tied his hands and legs before assaulting him with a plastic pipe, causing fatal head injuries. The accused allegedly stuffed Khan’s body into a drum and dumped it in a drain in an isolated area falling under the jurisdiction of Valiv Police Station.

Police arrested Mehajabeen and Tariq on May 7, while efforts are underway to trace Hasan and Pathan. A case has been registered under multiple sections of the Bharatiya Nyaya Sanhita, including murder, kidnapping, criminal conspiracy and destruction of evidence.

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Crime

MBVV Police Crack Down On Drug Trafficking: 40 Arrested In Three Weeks, Including 6 Foreign Nationals

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Mira-Bhayandar: Taking serious note of the alarming rise in drug trafficking and consumption across the twin cities of Mira-Bhayandar and Vasai-Virar, the local police launched a major crackdown.

Under the leadership of Police Commissioner Niket Kaushik, a special campaign was conducted from April 20 to May 12 with the primary goal of breaking the spine of the drug mafia and saving the younger generation from addiction.

All three sub-divisional offices, two Anti-Narcotics Cells (ANC), and three units of the Crime Branch operating under the Mira Bhayandar-Vasai Virar (MBVV) Police Commissionerate joined forces for this extensive operation.Arrests and Massive Seizures.

According to official police data: 40 traffickers were arrested during the campaign, which includes 6 foreign nationals.Contraband with an estimated international market value of ₹1.90 crore was seized.The confiscated illicit substances include ganja (marijuana), gard (heroin), brown sugar, cocaine, charas, MDMA pills, hydroponic weed, mephedrone, and drug-laced cough syrups.

The police initiated strict preventive actions against 232 habitual narcotics offenders. Additionally, 422 individuals were detained for consuming ganja.

More than 500 cases have been registered under the relevant sections of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985. The police reiterated that the production, consumption, and trafficking of drugs under the NDPS Act are severe, punishable offenses.

Local citizens have expressed hope that this administrative action will not remain a temporary campaign but will continue consistently to completely eradicate the drug menace from the roots.

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Crime

Palghar Horror: 21-Year-Old Woman Brutally Attacked With Knife Near Vasai Fort; Attempted Murder Case Filed

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Vasai, May 15: In a shocking incident on Wednesday evening, a 21-year-old woman was the victim of a life-threatening knife attack near the Vasai Fort area. The attack, reportedly fuelled by a dispute over a friendship, has left the young woman seriously injured and undergoing treatment at a local hospital.

The Vasai police have registered a case of attempted murder against the accused.

The victim has been identified as Answita Donald Patil (21). The incident took place around 5.15 p.m. on Wednesday near the Datta Mandir Road area, adjacent to the historic Vasai Fort.

According to police reports, the accused, Sanchit Dominic Bala (23), allegedly harboured deep resentment regarding Answita’s friendship with another youth, Rohit Kapi.

Sanchit intercepted Answita while she was in the fort vicinity. Following a heated confrontation, the accused allegedly threatened her before slashing her neck with a knife in a fit of rage. The victim sustained severe injuries and was rushed to hospital by locals.

The brutal nature of the attack in a popular public spot has sent shockwaves throughout the locality. Following the assault, the accused fled the scene.

Upon receiving information, the Vasai police immediately formed investigation teams to track him down.

“We have registered a case under the relevant sections for attempted murder. Our teams were dispatched immediately to apprehend the suspect,” stated a police official involved in the case.

The police are currently recording statements from witnesses and checking CCTV footage from the surrounding area to strengthen the case. Answita remains under medical supervision, and her condition is being closely monitored.

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