How a ₹14,000 Loan Led Kerala Police to a 40-Person Scam Office in Noida?

Key Takeaways 

• Kerala Police arrested three men from Noida who ran the illegal loan app “Instant Funds”. The case is linked to the death of a dental student in Kannur who was being harassed over a loan of ₹14,000.
   
• A cybercrime case was filed last week. The student’s college teacher was listed as a reference in the loan. The teacher received many threatening calls and messages after the student missed the payment. 

 Kannur City Cyber Crime Police arrested three men running the loan app “Instant Funds” in connection with the death of a dental college student at Ancharakandi. The arrested are Rishikesh Tiwari (32) from Ghaziabad, Prashant Kheval (28) from Uttar Pradesh, and Prakash Jai (54) from Faridabad, Haryana.

The student, RL Nithinraj, a first-year BDS student at Kannur Medical College, had borrowed ₹14,000 through a mobile loan application in December. The loan was taken after he used money meant for his mother’s medical treatment and for purchasing a dental kit. 

The accused started targeting his teacher when the payment was delayed. They kept making threatening calls again and again. They called from new numbers after the teacher blocked their numbers. 

How a ₹14,000 Loan Turned Into a Cross-Border Cyber Crime Operation?

The police traced an active number to Noida. They identified an office functioning like an IT setup with around 40 employees handling loan promotions, disbursement, and recovery. 

A raid was conducted with the help of the Noida Police. The accused were using SIM boxes capable of operating up to 30 SIM cards at the same time for mass calls. SIM boxes are devices used to make bulk calls cheaply, often misused for scam operations.

The accused have been booked under the Kerala Money Lenders Act, Kerala Prohibition of Charging Exorbitant Interest Act (2012), and Section 308 of the Bharatiya Nyaya Sanhita. 

The arrests were made under the direction of Kannur City Police Commissioner Nidhinraj P. IPS, with a team led by SI Mithun SV. This case shows just how organised these illegal loan app networks have become. They have corporate-style offices and dedicated staff, targeting vulnerable borrowers across state borders.

The Bigger Threat No One Is Talking About!

Over 60% of loan app complaints involve blackmail using personal data, according to The Kanoon Advisors. The RBI says recovery agents cannot threaten or harass people. Regulated lenders are responsible for their agents.

Experts at Lead India say many cases happen because the lender is not regulated, so RBI rules do not apply.

If you face harassment:

• Save screenshots and call records as proof
• Report illegal apps on RBI’s SACHET portal
• Call 1930 for cybercrime complaints

RBI also launched a Digital Lending Apps directory on July 1, 2025. You can use it to check if a loan app is safe before borrowing.

Conclusion 

The Kannur case is not a one-time incident. It shows how easily fake loan apps can trap people who need money. Once trapped, they do not just harass the borrower, but also people around them.

Always check any loan app before downloading it if it is listed on the Reserve Bank of India directory. Report it on helpline 1930 if you see anything suspicious. 

Frequently Asked Questions

1. How can I tell if a loan app is fake?
Check if the app is listed with the Reserve Bank of India. Fake apps ask for contact and photo access, promise instant loans, and charge high interest. Always verify on the RBI directory before downloading or borrowing.

2. What should I do if a loan app is blackmailing my family?
Do not pay more money. Save all proof, like screenshots and calls. Report it on helpline 1930 and file a police complaint. Inform your contacts that it is fake. Remove app permissions and report the app on the RBI SACHET portal.