Immediately ban Chinese loan apps: Cong to GoI

New Delhi, Aug 30 The Congress on Tuesday raised questions on Centre’s silence on the Chinese fraud loan apps which reports have claimed has so far killed 52 people and siphoned off Rs 500 crore through Hawala.
Congress spokesperson Gourav Vallabh said: “Why the Narendra Modi-led government in deep slumber while illegal Chinese loan applications are duping lakhs of Indians by conspiring through debt traps?”
The party demanded immediate ban on all such applications.
Addressing a press conference at the party headquarters here, Vallabh said, “It has been 2 years since the news of Chinese loan apps duping lakhs of Indians through its conspiracy of the debt trap.
“An investigation between January and February 2021 found more than 1,100 digital loan apps available across play stores.
“The Reserve Bank of India (RBI) accepted that at least 600 such apps were operating illegally.”
A week back media also reported on a Uttar Pradesh gang using 100 loan apps to extort crores. The apps have been sending users’ details to China, as per investigation.
Vallabh said a trend has been observed as these apps mushroomed during the Covid outbreak since 2020.
Due to social fear, stigma, users paid money, which was later channeled to China through hawala or after purchasing cryptocurrencies, police officials have also said.
Till now, 52 individuals in our country committed suicide due to blackmailing by these loan apps, he said.
“The RBI is saying these apps (which are available on play store) are illegal. How can the government be a mute spectator? It is giving data of our citizen on platter. The government should immediately ban these apps,” Vallabh said.
“Chinese loan app companies siphoned off Rs 500 crore from India through the hawala route. There has been no strategy, no focus by the Modi government in evaluating priorities. Certain Chinese apps were banned in 2020 but the action on such apps has been lackluster.”
“When Enforcement Directorate and other agencies pay visits to each and every Opposition leader, why was it sleeping when at least Rs 500 crore were siphoned off from India by these Chinese loan apps?
“What is the Modi government waiting for to act on such apps?” the Congress spokesperson said.
He also said it was violation of the Prevention of Money Laundering Act (PMLA).
Congress general secretary in-charge of communications Jairam Ramesh also tweeted: “Prime Minister Narendra Modi who talked about showing ‘red eyes’ to China why is he sitting with his eyes closed over the matter.”