INDIA – Court to Hear Loan App Case After Student's Tragic Death

"Kannur BDS student death: Court to hear custody plea of loan app accused on April 22" – Onmanorama, April 19, 2026

What Happened?

On April 10, 2026, Nithin Raj – a 21-year-old first-year BDS (dental) student at Kannur Dental College in Kerala, India – fell from a campus building and died. The reason? A loan of just ₹15,000 (about $180 USD) from an illegal loan app called "Insta Pay," operated by a company named "Instant Funds" .

The Kannur Judicial First Class Magistrate Court is now set to hear the custody application of the three men arrested in connection with this case on April 22, 2026 .

Who Are the Accused?

Three men have been arrested and are currently in judicial custody :

• Rishikesh Tiwari (32 years old) from Uttar Pradesh
• Prasanth Gheval (28 years old) from Uttar Pradesh
• Prakash Jai (54 years old) from Haryana

These men were operating the loan app from a call center in Noida.

What Did the Loan App Do?

According to the police investigation, here is what happened :

• The app sanctioned a ₹15,000 loan to Nithin
• The interest rate was 36% – which is illegal under Kerala state laws
• On April 9 – just ONE DAY before his death – the accused repeatedly contacted Nithin
• They pressured him to repay the money through threats, intimidation, and sustained harassment

The accused have been charged under :

• Section 308 of the Indian Penal Code (extortion)
• Section 13 of the Kerala Money-Lenders Act
• Sections 9(1)(a) and 9(2) of the Kerala Prohibition of Charging Exorbitant Interest Act – which specifically deals with cases where harassment leads to suicide

The College's Situation

In a related development, police have also registered a case against two faculty members at the college – Dr Ram and Sangeetha – for abetment of suicide and under provisions of the SC/ST (Prevention of Atrocities) Act, following allegations of harassment by them as well. Both are currently absconding .

The Simple Truth

A 21-year-old with his entire future ahead of him is dead. A future dentist. A young man who had passed his entrance exams, gotten into medical school, and was working toward a career helping others.

His life ended because of a loan app on his phone.

A ₹15,000 loan. The price of a cheap smartphone. The cost of a few weeks of groceries.

This is not just a news story. This is a warning.

Step-by-Step Solutions (What YOU Can Do)

Step 1: Before you download ANY loan app, ask yourself: Can I really afford to repay this? What happens if I am one day late?

Step 2: Never borrow from an app that charges more than 30% interest. In India, 36% is already illegal in many states. That should be your red flag.

Step 3: If an app starts harassing you, DO NOT suffer in silence. Screenshot everything. Record call logs. Report to cyber helpline 1930 immediately .

Step 4: Tell someone you trust. Nithin kept his loan a secret. His faculty members only found out because the loan app started calling them. If you are trapped, speak up BEFORE it gets worse.

Step 5: Share this story with every student you know. Young people are the most vulnerable because they often have no steady income and limited access to formal credit.