Plea Against Chinese Fake Loan Apps : Supreme Court Asks Petitioner To Approach Centre With Representation

The Supreme Court on Wednesday disposed of a Public Interest Litigation(PIL) petition seeking action against China-backed fake loan apps by asking the petitioner to approach the Union Ministry with an appropriate representation.

A bench headed by the Chief Justice of India was considering a PIl filed by an NGO called "Save Them India Foundation" through its Chairman Mr.Praveen Kalaiselvan.

The petitioner highlighted the problem of several mobile-based apps, which became active during the COVID-19 lockdown period to trap innocent and gullible persons through offers of easy loans. According to the petitioner, this was an issue concerning national security as well since most of these apps are backed by Chinese companies. Such apps are illegal and unauthorized as they do not have the requisite permission from the Reserve Bank of India to do micro-financing.

When the matter was taken, the Chief Justice of India told the counsel, "You should make a representation to the Home Ministry or Finance Ministry".

The counsel submitted that the issue was very serious requiring judicial intervention.

"These are sensitive and high security matters. Make a representation to appropriate Ministry. Its not a judicial matter", the CJI added.

The petitioner had also submitted that China was monitoring and surveilling over the Prime Minister, President, Judges and other persons holding key positions in the country and sought an enquiry with respect to such foreign surveillance. Reference was made to a report of The Indian Express published on September 15, 2020, with respect to this submission.

According to the petitioner, China was also trying to attack India through the fake money-lending apps, which lead to the destruction of lives of several common people.

"These apps commit data theft and transfer the personal data of the Indian Citizens to china where companies sells the Information of Indian citizens. Digital loan apps on google play store provide small tenure loans/ micro loans (unsecured) from 7-60 days with minimal documentation such as Aadhar card, Pan Card and Selfie of the borrower, these apps have been identified to potentially high risk for its users. The data uploaded in these apps is being sold in the dark web. The recovery of such loans are being done against the policy of RBI fair practice codes. Black mailinng, Defaming, metally harassing are some day to day procedures for the recovery of these loans", the plea said.

lea seeking directions to the central government to investigate China's alleged surveillance on the President of India, Prime Minister, judges (sitting and retired) of the apex court and High Courts and other influential personalities.

Bench: You should make Representation to Home Ministry or Finance Ministry.

Counsel: We are dreaming of digital India, its not possible like this.

Bench: