ED raids six locations in Bangalore in Chinese Loan App case
NEW DELHI: The Enforcement Directorate (ED) raided six premises in Bangalore on Friday as part of an investigation into the Chinese Loan App case.
The federal agency carried out the raids under provisions of the Prevention of Money Laundering Act of 2002 (PMLA), the agency said on Saturday.
The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled and operated by Chinese persons were covered by the search operation, the ED said.
During the search operation, ED said, it was noticed that the raided entities were generating proceeds of crime through various merchant IDs and accounts held with payment gateways and banks and that they do not operate either from the addresses given on the MCA website or registered addresses and have false addresses.
“An amount of Rs 17 crore has been seized from the merchant IDs and bank accounts of these Chinese-controlled entities,” the agency said.
The case is based on 18 FIRs registered by the Bengaluru City Cybercrime Police Station against numerous entities and individuals in relation to their involvement in extortion and harassment of the public who had benefited from small amounts of loans through the mobile applications managed by these entities and persons.
During investigations, ED said, it has come to light that these entities are controlled or operated by Chinese people.
“The modus operandi of these entities is to use fake Indian documents and make them bogus directors of these entities, they generate proceeds of crime,” the ED said.
“The said entities were found to carry out their suspicious and illegal activities through various merchant IDs and accounts held with payment gateways and banks.”