Varthur police in Bengaluru have registered FIRs against Transactree Technologies Pvt Ltd and One MobiKwik Systems Ltd
The complaints, registered by investors in Mobikwik Xtra, allege the platform has diverted investor funds and cheated investors
Mobikwik Xtra is a P2P lending platform operated by Mobikwik and Lendbox
Bengaluru Police have reportedly registered FIRs against fintech firms MobiKwik
and Lendbox regarding alleged investor cheating and misuse of funds via their P2P lending platform Mobikwik Xtra.
As per a report by The Indian Express, the complaints were filed in Bengaluru’s Varthur against Transactree Technologies Pvt Ltd and One MobiKwik Systems Ltd. Complainants alleged that the firms promised fixed-deposit-like returns and easy withdrawals, but failed to return the invested sums.
One complaint, filed on May 14 by Arjeet Singh Benchhor, claimed the complainant had invested ₹4 Lakh on Mobikwik Xtra, but the sum remained blocked and could not be withdrawn. The complainant alleged that the platform had diverted investor funds in violation of RBI guidelines, citing a borrower mapping report dated May 5 and lender verification findings. These documents allegedly revealed that while investor money remained trapped in accounts tied to the accused entities, multiple linked borrower accounts had defaulted or become inactive.
This complainant further claimed that more than 630 investors across India had collectively invested over ₹6 Cr in the scheme, and sought legal action against the company as well as freezing of its accounts.
Another investor, Mayank Dey, filed a separate complaint stating that ₹91,341 of his ₹3 Lakh investment through the platform remains blocked. Dey alleged that the companies marketed their platforms as secure, liquid investments similar to a fixed deposit, but later blocked investors from withdrawing the invested sums without their consent.
The second complainant also claimed that more than 420 investors across the country face a combined exposure of over ₹5.93 Cr under the scheme.
Mobikwik declined to comment on the matter when Inc42 reached out.
Launched in 20222, MobiKwik Xtra is an alternative investment product powered by NBFC partner Lendnox to generate returns with low volatility, by offering consumers the flexibility to invest funds for shorter durations.
“This is an emerging asset class for investors where one can directly lend to retail borrowers via a RBI registered NBFC-P2P. Xtra is crafted for consumers who have a higher risk appetite and earn higher interest in comparison to other traditional fixed-income products in the market,” MobiKwik description of the product from its DRHP read.
In mid-2024, the RBI began cracking down on P2P lending platforms by issuing new guidelines and blocking them from onboarding new customers. The guidelines included restrictions on how P2P lending can be marketed, imposing lending and borrowing caps and fixed platform fees, and banning cross-selling of unrelated products.
The RBI cited misselling of P2P lending products as an investment product as one of the core justifications for its crackdown. At the same time, the tightening of the norms disrupted business models in the space, forcing several fintech platforms to scale back or shut down their P2P lending plays.
For companies like MobiKwik, the alteration in RBI guidelines led them to reevaluate their products.
Notably, Mobikwik Xtra had caught flak back in 2024 after investors on social media claimed that it changed its withdrawal policy without notifying them and transferred their investments to other borrowers’ accounts without their knowledge.
Interestingly, Mobikwik earlier this year scored a major win with the approval of its NBFC licence, enabling the company to begin its transition from a payments company to a regulated lending platform.
Source: Inc42 - Startups
