How Bengaluru-based firm duped 2,000 students of Rs 18 crore in name of education loan

Due to recent layoffs and a lack of jobs, young people looking for work are increasingly vulnerable to fraud. The use of honey traps and lucrative promises by con artists to defraud people of money has grown extremely widespread. A CEO of a company situated in Bengaluru has been detained in relation to the fraud of approximately 2,000 students for a total of about Rs 18 crores.

According to reports, the company's management defrauded each student out of more than Rs 2 lakh. According to the Moneycontrol report, an event was discovered as a result of a complaint from a student, age 26, who had joined in the company's 24-month data course in December 2022.

Sreenivas, the CEO of Geeklurn, was detained regarding to the allegation, while Raman P. C., the chief financial officer, and Aman, the head of operations, are still on the wanted list. In accordance with the terms of the contract, the business was in charge of covering the Equated Monthly Instalments (EMI) until the learners found jobs. Students would then assume responsibility for the EMI payments after landing a job.

However, it has been claimed that after the third month, the corporation stopped putting the EMIs into the students' accounts. Additionally, they claimed the arrangement had been revoked and sought full payment from the pupils. On the other hand, because they had not finished the duration and were not yet job-ready, the students had trouble paying their dues.

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Until the student found work, the business was required to continue covering the EMI; then, ownership would pass to the student. The accused, however, did not uphold the arrangement. After the third month, they ceased transferring the EMIs into the student's account and wanted the remaining payments, claiming that the arrangement had been terminated for an unspecified reason.

According to a police official, the student, who had not finished the online course and was out of work, found it difficult to meet his financial responsibilities, Indian Express reported. 13 other students have come forward after the first lawsuit to accuse the corporation of tricking them in similar situations. Meanwhile, Senior Police Officer P Krishnakanth reportedly told Moneycontrol that Geeklurn has been running similar scams in other states including Mumbai and Andhra Pradesh.