Paytm and Razorpay wanted in Bangalore in Chinese loan app probe
The Law Enforcement Directorate raided the premises of online payment companies including Razorpay Pvt Ltd, Cashfree Payments and Paytm Payment Services Ltd as part of an investigation into a Chinese lending app.
The investigative agency carried out the search operations at the Bengaluru Technology Center on Friday amid allegations of extortion and harassment of customers involving the Chinese app, according to a statement emailed by the agency. investigation on Saturday.
“During investigations, it came to light that these entities are Chinese controlled/operated,” he said. They forged documents of Indians, making them ‘dummy directors’ of companies that generated proceeds of crime through merchant accounts held with payment gateways and banks, the investigative agency said , adding that she had seized 17 crore rupees.
Razorpay said some of its merchants were investigated by law enforcement about a year and a half ago.
“As part of the ongoing investigation, authorities have requested additional information to assist in the investigation,” the company said, adding that it had cooperated fully. “Authorities were satisfied with our due diligence process.”
A Paytm spokesperson said they are cooperating with authorities, who are investigating a specific set of merchants. “The authorities asked us to provide certain information about these traders under surveillance, to which we quickly responded.”
The entities are “independent” and not owned by Paytm, the company said in a filing to the National Indian Stock Exchange, while confirming that it provides them with payment processing solutions. He added that the funds seized by the agency do not belong to Paytm or any of its group companies.
Cashfree said in a statement on Sunday that it had cooperated with the agency’s investigation, providing them with necessary information. “Our operations and onboarding processes adhere to PMLA and KYC guidelines, and we will continue to do so,” he said, referring to the Prevention of Money Laundering Act.
Late last month, the agency also raided the premises of a16z-backed crypto exchange CoinSwitch Kuber, probing its directors and CEO after accusing them of violations of forex laws.