KOCHI: The Enforcement Directorate (ED) has arrested four Tamil Nadu natives for their links to Chinese bogus loan apps after its probe revealed that the shell companies operated by these persons transferred over Rs 170 crore to the Chinese operators via Singapore in 2023.
It was in February 2024 that ED registered a money laundering case based on multiple FIRs registered at various police stations in Kerala against bogus loan apps.
ED had raided the house of a Vypeen native Raphael James Rozario who allegedly provided mule bank accounts opened by persons with financial needs on a commission basis.
The funds were collected using these mule bank accounts from the victims of online loan apps. Later, the amount was parked in the bank accounts of shell companies operated by the arrested persons. The money was later transferred to bank accounts in Singapore via hawala and cryptocurrencies, officials said.
The arrested persons are Daniel Shivakumar, 37, director of Xoduz Solution, Jawahar Nagar, Chennai; Kathiravan Ravi, 42, director of Future Vision Media Solutions, Mudichur, Kancheepuram; Anto Paul Prakash, 32, of proprietor of Global Exposition and Infomedia Solution, Alandur, Kancheepuram; and Allen Samuel, 29, director of Aprikiwi Solutions, Alandur, Kancheepuram.
According to ED officials, various Chinese loan apps in APK format are being circulated on various social media websites. They run advertisements for easy loans on social media platforms.
Later, people approaching them are provided with links to install APK files containing the loan apps. When installed, the apps take control of crucial data of mobile phones. The ED probe also revealed several bogus gambling and investment apps linked to mule bank accounts opened in India with the help of Raphel James Rozario.
During the probe, ED found that Raphael arranged mule bank accounts with the help of Nitin Varghese and Afreed KY. Initially, the bank account details were given to a person named Sayid Muhammad. Later, the bank account details were submitted digitally through the website www.aplhatakpolymer.in.
They arranged over 470 mule accounts by paying Rs 5,000 for each account. Some mule bank accounts were procured by paying Rs 1,200 per week for eight months. Bank account details including ATM card number and ATM PIN were also handed over to a woman named Leena who contacted Sayid Muhammad online.
"One of the shell companies received as many as Rs 115 crore in its bank account. Of this, Rs 110 crore was transferred to a bank account in Mumbai. Later, the amount was sent to Singapore. Similarly, another shell company received around Rs 58 crore of which Rs 50 crore were channelled to China and Singapore," sources said.
The arrested persons were produced before the ED Special Court in Kochi on Friday. The court granted four days of custody of the arrested persons to ED. They will be produced before the court again on Monday.