Chinese loan app case: The Enforcement Directorate has been carrying out fresh raids at multiple locations belonging to payment gateway Paytm and PayU. The raid are in connection with Chinese Loan apps. According to sources, the raids have been on in Mumbai, Delhi, Gurugram, Lucknow and Kolkata. There is, however, no official comment from the Enforcement Directorate in connection to these raids.
The last raids were conducted on September 3 at the premises belonging to online payments gateway, including Razorpay Pvt Ltd, Cashfree Payments and Paytm Payment Services Ltd.
The case is based on 18 FIRs registered by Cyber Crime Police Station, Bengaluru City, against numerous persons for their involvement in extortion and harassment of the public who had availed small loans through the mobile apps being run by those entities.
"During enquiries, it had emerged that these entities are operated by Chinese persons. The modus operandi of these entities is that by using forged documents of Indians and making them dummy directors of those entities, they are generating proceeds of crime," the ED had said.
The ED had said that it has come to their notice that the entities were conducting their suspected 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 were covered in the search operation.
"During the search operations, it was noticed that the said entities were generating proceeds of crime through various Merchant IDs/Accounts held with Payment Gateways/banks and they are also not operating from the addresses given on the MCA website/registered address and having fake addresses. An amount of Rs 17 cr has been seized in merchant IDs and bank accounts of these Chinese persons-controlled entities," the ED official had said.
Meanwhile, a Razorpay spokesperson had said "Some of our merchants were being investigated by law enforcement about a year and a half back. As part of the ongoing investigation, the authorities requested additional information to help with the investigation. We have fully cooperated and shared KYC and other details. The authorities were satisfied by our due diligence process."
The search operations are still in progress.
(With agency inputs)
Also Read: Instant loan-cum-extortion scam of Rs 500 cr involving Chinese nationals busted; 22 held
