Chinese loan app case: ED attaches ₹76.67 crore

The Enforcement Directorate (ED) has attached ₹76.67 crore in various bank accounts and payment gateways pertaining to the Chinese loan app case. Chinese companies and their Indian associates are being probed for giving loans at exorbitant interest rates against RBI guidelines. The probe was initiated under the Provisions of the Prevention of Money Laundering Act, 2002 (PMLA) .

The amount attached by ED pertains to seven companies, of which three are fintech companies — Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by the Chinese nationals.

Three are non-banking financial companies registered with RBI — X10 Financial Services Private Limited, Track Fin-ed Private Limited and Jamnadas Morarjee Finance Private Limited.

According to an official release, the fintech companies have an agreement with respective NBFCs for disbursement of loans through digital lending apps.

The amount attached by the ED also includes the amount of fee charged by Razorpay Software Private Limited to the extent of ₹86.44 lakhs for not conducting due diligence in case of one company enrolled with it for disbursement and collection of loans, said the ED in a press release.

The loan apps through their recovery agents resorted to systematic abuse and harassment of defaulters through call centres for coercive recovery of the loans. According to the ED, they obtained sensitive data of users stored on mobile such as contacts, photographs and used them to defame or blackmail them. The companies allegedly even threatened the borrowers by sending fake legal notices to their relatives and family members.

Further investigation is in progress.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 17, 2021 2:55:48 AM |

Next Story