ED conducted a search and seizure operation related to a Chinese loan app fraud case

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ED conducted a search and seizure operation related to a Chinese loan app fraud case

The Directorate of Execution (ED) carried out searches under the provisions of the Prevention of Money Laundering Act 2002 (PMLA) on 02.09.2022 at 06 premises in Bangalore, in connection with an investigation relating to the Chinese Loan App matter.

The case is based on 18 FIRs that the Bengaluru City Cybercrime Police Station filed against various businesses and individuals for their role in extortion and harassment of members of the public who had obtained small loans through the mobile applications they operated.

During investigations, it appeared that these entities are controlled/operated by Chinese persons. These entities operate in a manner that generates criminal revenue by using forged Indian documents and posing as their fictitious directors. The aforementioned companies were found to operate their alleged illegal operation through a number of logins and merchant accounts with banks and payment gateways.

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.

During the search operation, the aforementioned entities were found to be using a variety of IDs and merchant accounts with banks and payment gateways to generate proceeds of crime. They were also operating from fictitious addresses rather than addresses listed on the MCA website or registered addresses.

An amount of Rs.17 Crore was seized from the merchant IDs and bank accounts of these Chinese-controlled entities.

The search operation is in progress.

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