Chinese mortgage apps case: The Enforcement Directorate Saturday stated it’s conducting raids at Bengaluru premises of on-line cost gateways like Razorpay, Paytm and Cashfree as a part of an ongoing probe in opposition to “illegal” on the spot smartphone-based loans “controlled” by Chinese individuals.
The searches have been launched Friday at six premises in Karnataka’s capital metropolis, it stated in a press release.
The search operation is in progress, the Enforcement Directorate stated.
The federal probe company stated it has seized Rs 17 crore value funds saved in “merchant IDs and bank accounts of these Chinese persons-controlled entities”, in the course of the raids.
The modus operandi of those entities is that they use cast paperwork of Indians and make them dummy administrators resulting in technology of “proceeds of crime”, it alleged.
“These entities are controlled/operated by Chinese persons,” it stated.
“It has come to notice that the said entities were doing their suspected/illegal business 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 in the search operation,” the ED stated.
The entities underneath investigation have been producing proceeds of crime by way of numerous service provider IDs/accounts held with cost gateways/banks and they’re additionally not working from the addresses given on the MCA (ministry of company affairs) web site/registered tackle they usually have “fake” addresses, the company stated.
The ED stated its cash laundering case is predicated on no less than 18 FIRs filed by the Bengaluru Police cyber crime station in opposition to “numerous entities/persons in connection with their involvement in extortion and harassment of the public who had availed small amount of loans through the mobile apps being run by those entities/persons.”