Kannur BDS student death: Noida loan app under probe has over 1,200 customers in Kerala, complaints galore over harassment

A multi-storeyed commercial building in the busy city of Noida, Uttar Pradesh, housed the operations of Instant Funds, the loan app firm now under the scanner in connection with the death of a first-year BDS student from Kerala. With no signboards or external identification, the office functioned discreetly. Inside, however, it resembled a full-fledged IT setup with around 40 employees handling operations.

According to Kannur City Police Commissioner Nidhinraj P, who is leading the probe, the firm is registered as a Non-Banking Financial Company (NBFC) and has been operational for the past three years. “On the surface, through its website and mobile application, it appears legitimate. But its internal operations are illegal and part of a nationwide racket,” he told Onmanorama.

The firm has over 38,000 customers across India, including around 1,200 in Kerala, though no prior cases have been registered against it in the state, he added.

The case came to light following the death of Nithin Raj R L, 22, a native of Uzhamalackal in Thiruvananthapuram. He was found critically injured on the campus of the Kannur Dental College on April 10 after falling from a building and later succumbed to his injuries. Allegations surfaced that he had been under severe stress due to harassment from a loan app after defaulting on repayment.

A faculty member, Latha Sasidaran, also filed a complaint stating that she was repeatedly contacted and harassed by the app operators on Nithin’s loan. According to the police, Nithin had applied for a loan of ₹15,000 on January 14, but received only ₹13,000 after deductions. After missing repayments for about two months, he was allegedly pressured to pay ₹39,500 and subjected to repeated threats.

Based on the complaint, police launched an investigation into the app, while also probing separate allegations of abuse and harassment Nithin faced from two faculty members of his college. A suo motu case was also registered against the app under the Kerala Money-Lenders Act and the Kerala Prohibition of Charging Exorbitant Interest Act.

Investigators tracked multiple phone numbers used to contact Nithin and his teacher. Though most were later switched off or masked, one active number led the cyber team to Noida. A seven-member Kerala Police team reached the city and, with assistance from local police, located the office.

“The building, rented though, had no identification, which itself raised suspicion. The operation resembled a call centre, with employees, mostly North Indian natives, constantly on calls managing loan disbursals and recoveries. Many appeared to be working on low salaries and daily wages,” the Commissioner said.

“Despite support from Noida Police, the arrests in broad daylight faced resistance from locals and security staff. The team, however, succeeded in detaining Rishikesh Tiwari (32), Prasanth Gheval (28) and Prakash Jai (54), all managers of the firm, on Thursday,” the official said.

Police also recovered numerous complaints from customers requesting that the firm not harass their contacts over loan defaults. “This pattern is similar to what happened in Nithin’s case. It is still unclear how they accessed Latha Sasidaran’s number, but third-party data access is a strong possibility,” he added.

During the raid, officers seized SIM boxes and around 30 SIM cards. These devices allow multiple SIMs to operate simultaneously, enabling mass calling without detection. “They don’t rely on physical intimidation. Everything is done online, calls, threats and harassment. Even if one number is blocked, another is used. This continues relentlessly, often dragging family and friends into the pressure cycle,” he said.

The officer pointed out that users often grant extensive permissions while installing such apps, allowing access to contacts, call data and even photo galleries. “In some cases, images have been morphed and misused, though no such evidence has emerged in this case so far. But there are still chances of something that we are unaware of,” he noted.

He also added that Nithin’s death was being examined from multiple angles, including alleged institutional harassment. “The loan app harassment appears to be one of the factors that may have pushed him towards extreme distress. Such cases need to be treated with utmost seriousness,” he said.

Highlighting the broader concern, the commissioner said many similar apps operate across the country. “The problem persists because there is demand. People in urgent need of money end up granting permissions without fully understanding the risks, and these platforms exploit that vulnerability,” he added.

The accused, who were formally arrested on Friday, are now in judicial custody.