Kannur (Kerala): Police have registered a case of extortion and digital harassment against an online loan app following the death of a first-year BDS student, in a case that has intensified scrutiny of predatory loan apps in India.

The case relates to the death of 22-year-old Nithin Raj R L, a student of a private dental college in Anjarakandy, Kerala, who was found critically injured after falling from a building on April 10 and later succumbed to his injuries.

loan app accused of extortion and intimidation

According to police, the online lending platform allegedly used intimidation tactics to recover a ₹15,000 loan disbursed to the student in January at an interest rate of 36 per cent, in violation of financial regulations.

A case was registered at Chakkarakkallu police station based on a cyber cell complaint filed on April 16. The FIR invokes:

  • Section 308 of the Bharatiya Nyaya Sanhita (extortion)
  • Kerala Money Lenders Act
  • Kerala Prohibition of Charging Exorbitant Interest Act

Investigators said the app operators repeatedly contacted and allegedly mentally harassed and threatened the student from April 9 onwards, leading up to the incident.

Case of alleged suicide under investigation

Police had earlier registered a separate case of abetment of suicide and charges under the SC/ST (Prevention of Atrocities) Act against two faculty members of the college, following allegations of harassment linked to caste and complexion.

The accused include:

  • Dental Anatomy Department Head Dr M K Ram
  • Associate Professor Dr KT Sangeetha Nambiar

Both remain untraced, according to officials.

College action and institutional probe

Following student protests, the college management dismissed Dr M K Ram from service.

Multiple agencies have launched parallel inquiries into the incident, including:

  • Kerala SC/ST Commission
  • Kerala State Human Rights Commission
  • Kerala State Youth Commission
  • Kerala University of Health Sciences
  • Medical Education Department

Rising concern over online loan app harassment in India

The case has renewed concerns over the rise of illegal online loan apps in India, often accused of:

  • Charging exorbitant interest rates
  • Using abusive recovery tactics
  • Digital intimidation and blackmail
  • Targeting vulnerable students and low-income borrowers

Authorities are increasingly cracking down on such platforms amid growing reports of harassment-related suicides.

PTI