New Delhi, Sep 03: The Enforcement Directorate (ED) is conducting raids on the Bengaluru premises of on-line fee gateways like Razorpay, Paytm and Cashfree as a part of an ongoing probe in opposition to “illegal” instantaneous smartphone-based loans “controlled” by Chinese language individuals, the central company stated.
The searches, which have been launched on Friday at six premises in Bengaluru, is in progress, the Enforcement Directorate acknowledged.
The federal probe company stated it has seized Rs 17 crore value funds stored in “merchant IDs and bank accounts of these Chinese persons-controlled entities”, throughout the raids.
The modus operandi of those entities is that they use cast paperwork of Indians and make them dummy administrators resulting in era 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 ED stated.
“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 beneath investigation have been producing proceeds of crime via varied service provider IDs/accounts held with fee gateways/banks and they’re additionally not working from the addresses given on the MCA (ministry of company affairs) web site/registered deal with they usually have “fake” addresses, the company stated.
The ED stated its cash laundering case relies on at the least 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.”
Story first printed: Saturday, September 3, 2022, 17:51 [IST]