In CRM-M-56637-2022-PUNJ HC- P&H HC denies bail to persons accused of blackmailing users of loan lending App by accessing their phone gallery and contact information available in their phones
Justice Anoop Chitkara [05-01-2023]

Read Order: Sunil Kumar Chauhan v. State of UT 

Monika Rahar

Chandigarh, January 10, 2023: The Punjab and Haryana High Court has denied bail to the accused persons who were running a racket by bringing people on an App called Hugo on the pretext of advancing an easy loan and in the backhand, downloading data from their contacts and phone gallery and using the same (private pictures) to threaten them into paying the demanded sum. 

The bench of Justice Anoop Chitkara observed, “The allegations against the accused persons are that of active participation in the gang activities by alluring the complainant to download the app by sending on his mobile phone and subsequently enticing him to pay money.”

The petitioners, incarcerated upon their arrest in an FIR registered under Sections 384, 420, 468, 471, 509, 120-B IPC (Sections 66-D, 67 of Information technology Act, 2000 and Section 14 of the Foreigners act, 1946 added later on), approached the Court under Section 439 of Code of Criminal Procedure, 1973 (CrPC). 

The complainant informed the police that he had received an SMS on his mobile number which contained a URL link and asked for Hugo loan application installation. When he clicked the link, the application sought permission to get access to all his contacts, and gallery on the phone and he allowed the said access. 

Subsequently, he checked his eligibility for the loan on the Hugo loan app and filled in all his details. The application showed that he was eligible for a loan of Rs.3500/-. However, the complainant did not apply for the loan. 

Later on, he got to know that some persons had his naked pictures and they were threatening to circulate the same to his contacts if the demanded amount was not paid. These pictures and contacts were downloaded by those who were operating the Hugo App. 

After hearing the parties, the Court observed that the accused persons in these cases were running a racket on a mobile app Hugo loan application. Reflecting on the modus operandi, the Bench added, these scammers entice the needy persons for easy loan and while downloading the application, the app seeks access to the contacts and gallery which the people grant enabling them to download the app. After that the app would show them eligible for a meagre amount of loan. 

“The amount in the present case is INR 3500. After realising the eligibility which is like peanuts, the persons do not continue with the application. However, in the meantime, the application downloads all the contacts and the photographs of the phone gallery. The gang members scroll through the photographs and try to find intimate photographs. In the phones where they find such photographs, they started black-mailing the persons by threatening them and to share the same to all their contacts from whose phone details have already been downloaded”, the bench added. 

The Court further observed that the allegations against the accused persons were that of active participation in the gang activities by alluring the complainant to download the app by sending on his mobile phone and they subsequently enticing him to pay money. 

“The accused take advantage of big loop-holes in identification and procuring Aadhar Cards and sim cards. Surprisingly, the petitioners were able to obtain the sim cards on other persons’ names or also open bank accounts with such documents. Given the grievousness of the offence, the petitioners are not entitled to bail at this stage. However, it shall be permissible for the petitioners to file fresh petition for bail on the ground of delay in trial or prolonged custody in accordance with law”, the Bench observed while dismissing the petition.