On Saturday, The Enforcement Directorate (ED) continued its raids for the second day at six premises in Karnataka. The federal agency conducted the raids under provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Saturday.
New Delhi: On Saturday, The Enforcement Directorate (ED) continued its raids for the second day at six premises in Karnataka in connection with an ongoing probe against “illegal” instant smartphone-based loans “controlled” by Chinese persons. The federal agency conducted the raids under provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Saturday.
According to a statement, searches were conducted on Friday at the Bengaluru premises of online payment gateways such as Razorpay, Paytm and Cashfree under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The search operation was going on till the filing of this report.
The federal agency said that the case is based on at least 18 FIRs registered by the Cyber Crime Unit of Bengaluru Police against “multiple entities/individuals in connection with their involvement in extortion and harassment of the public, who through it loan amount was taken. mobile apps run by those entities/individuals”.
The central agency said that an amount of ₹17 crore has been seized in merchant IDs and bank accounts of entities controlled by these Chinese individuals. The ED said the modus operandi of these entities is that they use forged documents of Indians and make them dummy directors, thereby generating “crime proceeds”.
“These entities are controlled/operated by Chinese individuals,” it said.
“It is learned that the said entities were carrying on their suspicious/illegal business through various merchant IDs/accounts with payment gateways/banks.”
“The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled/ operated by Chinese persons have been included in the search operation,” the ED said.
The entities under investigation were earning proceeds of crime through various merchant IDs/accounts maintained with payment gateways/banks and also from the addresses given on the website/registered addresses of MCA (Ministry of Corporate Affairs) are not working and they have “fake” address, the agency said.
Chinese Loan Apps Case: ED raids six places in Bengaluru in connection with Chinese loan app case