The Enforcement Directorate (ED) has attached movable assets to the tune of ₹106 crore in connection with the “Chinese-controlled” loan app case.
The Agency has alleged that entities were incorporated by appointing dummy directors on behalf of Chinese nationals. The identification documents of company staff were used to show them as directors and even bank accounts were opened in their name without their knowledge or prior consent.
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“These entities are involved in illegal/criminal activities by submitting fake addresses in KYC [Know Your Customer] documents and taking assistance from various professionals and other persons. They have provided instant short-term loans to the public through loan apps and other means and charged high processing fees...,” said the agency on Wednesday.
As alleged, the lenders charged exorbitant rates of interests. Many borrowers were threatened and mentally tortured over phone, and their family members, relatives and friends were also contacted for the recovery of money.
“These Chinese nationals-controlled entities have indulged in huge money laundering activities through the merchant IDs maintained with various payment gateways, Razorpay, Cashfree, Paytm, PayU, Easebuzz and bank accounts maintained with various banks,...thereby generating proceeds of crime,” said the ED, adding that ₹106 crore lying in the merchant IDs and bank accounts had been attached under the Prevention of Money Laundering Act.
The ED probe is based on several cases registered by the Cyber Crime police station in Bengaluru against multiple entities and persons on the allegation of their involvement in extortion and harassment of the people who had taken small amounts of loans through the mobile apps.
