The Directorate of Enforcement (ED) conducted raids on six loan app firms owned by Chinese nationals across the city and freezed accounts with ₹17 crores.
The raids were conducted based on a series of complaints received by the Central Crime Branch of Bengaluru Police in the recent past. The ED has been carrying out search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 since Friday.
The case is based on 18 FIRs registered by the Cyber Crime Police Station, Bengaluru City against numerous entities and persons in connection with their involvement in extortion and harassment of the public who had availed small amount of loans through the mobile apps.
Controlled by Chinese nationals
Inquiries revealed that these entities are controlled by Chinese nationals. The modus operandi of these entities involves using forged documents of Indians and making them dummy directors of those entities.
The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled and operated by Chinese persons were covered in the search operation.
During the search operation, it was noticed that the entities were conducting illegal business and generating proceeds of crime through various Merchant IDs and accounts held with payment gateways and banks. Further, they were also not operating from the registered addresses given on the website and held fake addresses.
An amount of ₹17 crore has been seized through the merchant IDs and bank accounts of these Chinese persons-controlled entities. The search operation is in progress, the official release, said.
