Case of Chinese loan applications: ED Raids Razorpay, Paytm, Cashfree

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The Law Enforcement Directorate said on Saturday it was carrying out raids on the Bangalore premises of online payment gateways like Razorpay, Paytm and Cashfree as part of an ongoing investigation into “illegal” instant lending. ” on smartphones “controlled” by Chinese. The searches were launched on Friday at six premises in the capital of Karnataka, he said in a statement. The search operation is in progress, indicated the Direction of the execution.

The federal investigative agency said it seized funds worth 17 crore rupees kept in “trader IDs and bank accounts of these Chinese-controlled entities”, during the raids. The modus operandi of these entities is that they use false documents of Indians and make them bogus directors leading to the generation of “proceeds of crime”, he alleged.

“These entities are Chinese controlled/operated,” he said. “The said entities were found to be doing their suspicious/illegal activities through various merchant IDs/accounts held with payment gateways/banks.” “The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled/operated by Chinese persons are covered by the search operation,” the ED said.

The entities under investigation were generating proceeds of crime through various merchant IDs/accounts held with payment gateways/banks nor do they operate from the addresses listed on the site web/registered MCA (Ministry of Corporate Affairs) address and they have a “fake” address, the agency said.

The ED said its money laundering case is based on at least 18 FIRs filed by the Bengaluru Police Cybercrime Station against “numerous entities/persons in relation to their involvement in extortion and harassment of the public who had benefited from a small amount of loans via the mobile applications carried out by these entities/persons.

(PTI)

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Article first published: Saturday, September 3, 2022, 3:11 p.m. [IST]

Rosalie M. Dehner