Kannur: The suspicious death of a BDS student in Kerala’s Kannur has exposed the dark underbelly of rapidly growing digital loan apps across the country. Three accused have been arrested from Noida in Uttar Pradesh for allegedly lending money to the student through a mobile application and then subjecting him to sustained pressure and mental harassment. Preliminary findings suggest that the case goes beyond a financial dispute and points towards a pattern of organised digital exploitation.
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The accused arrested have been identified as Rishikesh Tiwari (32), Prasanth Gheval (28), and Prakash Jai (54). They were arrested in Noida and brought to Kerala, where they were produced before a court and remanded to judicial custody. Investigators are now probing the wider network and searching for other possible individuals involved in the operation.
According to the case details, the deceased, Nithin Raj R L, a first-year student at Kannur Dental College, had taken a loan of ₹15,000 through a mobile application called ‘Insta Pay’, operated under a platform named ‘Instant Funds’. The loan allegedly carried an exorbitant interest rate of 36%, which is in violation of existing regulations. After disbursing the loan, the accused reportedly began pressuring the student to repay the amount.
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As per the FIR, on April 9, Nithin received repeated calls demanding repayment. During these interactions, he was allegedly threatened and mentally harassed. Investigators have also indicated that such apps often gain access to users’ mobile data—including contact lists, photos, and personal information—and use this data to intimidate and blackmail borrowers, thereby intensifying the pressure.
The following day, April 10, Nithin was found critically injured near the medical college premises. Reports suggest he had fallen from a building. He was rushed to a hospital, where he later succumbed to his injuries. Authorities are also examining the angle of abetment to suicide, given the allegations of sustained harassment and coercion.
The accused have been booked under charges related to extortion, as well as under provisions of the Kerala Money-Lenders Act and laws prohibiting exorbitant interest rates. Additional legal sections related to harassment leading to suicide have also been invoked in the case.
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During the course of the investigation, a separate case has also been registered against the loan app involved. It is alleged that the platform operated illegally, charged excessive interest rates, and used intimidation tactics against borrowers. Agencies are now working to identify the individuals or entities behind the app and determine whether the network extends to other states or even international operators.
A Student’s Death Raises Alarming Questions Over India’s Unregulated Lending Apps
This incident has once again highlighted the growing risks associated with unregulated digital loan applications in India. Experts warn that such platforms often lure users—especially young individuals—with the promise of quick, easy credit, only to later trap them in cycles of high interest rates and psychological pressure.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said,
“Digital loan apps are increasingly being misused. In many cases, they go beyond financial transactions and become tools of psychological coercion and blackmail. Fraudsters first build trust by offering small loans and then exploit personal data to mentally break the victim.”
Authorities are continuing their in-depth investigation into the network, examining digital devices, call records, and financial trails to uncover further evidence. Efforts are also underway to identify whether more victims have been targeted through similar platforms.
