Chandigarh, 1 January 2025: Authorities have arrested three individuals connected to the Hugo Loan app scam, intensifying investigations into a multi-layered fraud targeting digital loan users.
The suspects—Manoj Rathore (43), Punit Kumar (44), and Ashish Kakkar (33)—were apprehended in Delhi between December 29 and 30. A local court in Chandigarh later granted police three days of remand to question the trio.
According to officials, the suspects were part of a sophisticated network using fraudulent loan apps such as Hugo Loan, Coin Cash, and AA Loan to access sensitive personal data. Victims’ contact lists and photo galleries were reportedly misused for blackmail, with extortionists threatening to distribute altered images of family members unless payments were made.
Investigations revealed that Punit Kumar and Ashish Kakkar were central to the operations, channeling funds through shell companies registered under false credentials. Police described Kumar’s driver, Manoj Rathore, as a key player who forged KYC details and facilitated the transfer of victim payments.
“Evidence recovered includes ₹17 lakh and several electronic devices linked to the scam,” said a senior cyber police official. He added that virtual numbers and platforms like WeChat, Dingtalk, and GB WhatsApp were employed to pressure victims and collect extorted money.
The cybercrime investigation, initiated after the first case was registered in September 2022, has resulted in 29 arrests, including tele-callers and financial handlers. Officials are also probing international connections, including the alleged involvement of a Chinese national, and examining potential violations of the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
The Enforcement Directorate (ED) confirmed that both Kumar and Kakkar were previously apprehended under PMLA, shedding further light on the financial complexities of the case.
As investigators widen their search for more suspects and evidence, this scam underscores growing threats to digital payment ecosystems and the urgent need for robust security measures.
