Government Ban Several Apps linked to China based on the Ministry of Home Affairs’ recommendations, the Ministry of Electronics and Information Technology has banned 138 betting applications and 94 loan lending apps having Chinese connections in India (MHA). According to high government officials, the restriction was an issue on an ‘urgent’ and ’emergency’ basis. The move follows confirmation that these apps are subject to Section 69 of the IT Act due to content that is “prejudicial to the sovereignty and integrity of India.”
The move follows multiple allegations of extortion and intimidation of ordinary individuals. They obtained minor amounts of loans using the mobile apps operated by the abovementioned companies.
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India bans over 230 betting, and loan apps
The apps were built by Chinese nationals, who also paid Indians and appointed them as operating directors. According to reports, desperate people were likely to take out loans. They charge interest rates of up to 3,000 percent per year. When clients were unable to repay the interest, the app’s representatives began bullying them.
The representatives sent vulgar messages and threatened to expose modified images of the loan recipients. Moreover, they shamed them through messages to their contacts. The issue gained prominence following a spate of suicides, particularly in Andhra Pradesh and Telangana, by persons who accepted loans from such applications and lost money to betting apps. Furthermore, states including Telangana, Odisha, and Uttar Pradesh had then requested that the Union Ministry take action against the apps.
Even though betting and gambling are illegal in most parts of the country, the Ministry of Information and Broadcasting (MIB) issued an advisory stating that advertising these platforms and their campaign staff is also a crime under the provisions of the Consumer Protection Act 2019, the Cable TV Network Regulation Act 1995, and the IT Rules, 2021.
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