Enforcement Directorate has conducted raids on payment gateways – Paytm, Razorpay and Cashfree in connection with on-going probe against illegal Chinese loan apps. ED said searches were conducted at six premises in Bengaluru, including those belonging to the three fintech firms. Funds worth 17 crore rupees kept in merchant IDs and bank accounts of Chinese persons-controlled entities have been seized during raids. Elaborating on the modus operandi, ED said forged documents of Indian nationals were used to make them dummy directors leading to the generation of proceeds of crime.
The ED initiated a money laundering probe against illegal Chinese loan apps after 18 FIRs were lodged by the Bengaluru Police cyber crime station for extortion and harassment of the public who had availed small amounts of loans through Chinese mobile apps.
Smartphone-based Chinese instant loan apps have been under the scanner of Indian agencies following several allegations. Last month, Delhi Police busted a network of over 100 such apps and arrested 22 people for allegedly extorting money under the pretext of giving instant loans through their applications. They are accused of data theft and swindling money from loans availed.