Chandigarh, 1 January 2025 – Police have arrested three more suspects linked to the widespread Hugo Loan app scam, adding fresh momentum to the investigation into one of the most extensive digital extortion operations in recent years.
The accused, identified as Manoj Rathore (43), Punit Kumar (44), and Ashish Kakkar (33), were apprehended from Delhi between December 29 and 30. They were presented in a Chandigarh court, which remanded them to police custody for three days, officials said.
“The investigation has uncovered a complex operation involving fake loan apps such as Hugo Loan, Coin Cash, and AA Loan, which accessed victims’ personal data and exploited it for blackmail,” said the Superintendent of Police (Cyber). Victims reported receiving threats to circulate morphed images of their family members unless ransom was paid.
Punit Kumar and Ashish Kakkar allegedly played critical roles in creating and running shell companies used to process extorted funds. Police described Kumar’s driver, Manoj Rathore, as a key facilitator who handled forged KYC documents and enabled fraudulent transactions. The recovered amount includes ₹17 lakh, along with digital devices crucial for the operations.
Investigators revealed that the perpetrators used virtual phone numbers and platforms like WeChat, Dingtalk, and GB WhatsApp to extort money. “So far, 29 individuals—including tele-callers, account handlers, and managers—have been arrested. The scam may involve international players, and we are investigating links to a Chinese national,” said a police official.
The accused allegedly violated the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA), with Enforcement Directorate (ED) officials confirming previous arrests of Kumar and Kakkar under PMLA provisions.
With its roots traced back to a September 2022 case, the scam highlights alarming vulnerabilities in India’s digital payment systems, experts warn. Investigators continue to expand the probe to identify additional players and recover more stolen funds.
