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ED searches Paytm, Cashfree, and Razorpay offices as part of a probe into Chinese loan apps

According to the Enforcement Directorate, six online payment gateway locations in Bengaluru, including Razorpay, Paytm, and Cashfree, were raided on Saturday due to alleged irregularities in mobile app-based loans “managed” by Chinese individuals. 

The agency announced this evening that the searches, which began on Friday as part of an ongoing investigation, are still in progress.  According to the federal investigation agency, during the raids, money worth Rs 17 crore was taken from “merchant IDs and bank accounts of these Chinese persons-controlled organisations.” Razorpay and Cashlfree is going to corporate with the federal agency but at the same time paytm disagreed on it. 

It went on to say that the “Chinese controlled organisations” operated their allegedly unlawful businesses using a variety of merchant IDs and bank and payment gateway accounts. The agency claimed that the organisations were “producing proceeds of crime through numerous merchant IDs/accounts held with payment gateways/banks and they are also not functioning from the addresses stated on the MCA (minister of corporate affairs) website/registered address.” 

The ED stated that a case of money laundering has been opened as a result of at least 18 FIRs being filed by the Bengaluru Police Cyber Crime Station against various entities and individuals in relation to their involvement in extortion and harassment of the general public who had applied for small loans through mobile apps run by the accused entities and individuals.

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