Chinese loan apps are once again in the spotlight. A government source revealed that the Serious Fraud Investigation Office (SFIO) has concluded its investigation into 33 Chinese digital lending companies, including Omelette and Jump Monkey, and submitted its report to the Ministry of Corporate Affairs (MCA). Special courts have been designated to hear offenses under the Companies Act, falling under the jurisdiction of the MCA.
These findings are likely to trigger legal action under the relevant provisions of the Companies Act and other penal laws, as the investigation uncovered alleged financial fraud and concealment of beneficial ownership relationships with Chinese groups. This is part of the government’s broader action against fraudulent digital lending platforms, particularly those with Chinese funding links.