Nagpur: Nagpur Cyber Police have arrested a software engineer from Bhopal in connection with an alleged ₹200 crore loan app scam that is suspected to have cheated nearly five lakh people across India.

According to the police, the accused allegedly developed a mobile application that promoted instant online loans of up to ₹15,000 through social media advertisements. Thousands of users reportedly downloaded the app after seeing these ads.

Investigators said that once installed, the app allegedly gained access to users’ mobile phones, collecting personal data, including contacts, photographs and other sensitive information.

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Police alleged that after disbursing a loan of ₹15,000, the accused and his associates demanded repayments ranging from ₹25,000 to ₹50,000. Victims who failed to pay were allegedly threatened with the circulation of their personal information and photographs on social media.

The case came to light after two Nagpur residents approached the Cyber Police with complaints. Based on their statements, police registered a case under cheating and relevant provisions of the Information Technology Act before launching an investigation.

During the probe, the Cyber Police tracked down and arrested the software engineer from Bhopal. Investigators suspect the fraud network may have targeted nearly five lakh users across the country and are now probing the involvement of other members of the racket.

Police are continuing their investigation to trace the financial trail, identify additional accused, and determine the full extent of the alleged ₹200 crore fraud.