Execution Management (ED) on On Saturday, raids were launched on nine linked buildings with online Payment gateways Paytm, Razorpay and Cashfree in Bengaluru in Connection with a money laundering case – part of Ongoing investigation against Some unauthorized loans apps allegedly run By companies owned by Chinese citizens.
some of these companies also allegedly involved in Illegal betting. Transactions on these apps It is allegedly facilitated by the three payment gateways.
ED said he took Rs 17 crore held in Merchant IDs and bank accounts of These entities controlled by Chinese people’ during the raids.
A Razorpay spokesperson said in a statement: “Some of Our merchants have been investigated by law enforcement authorities about a year-And the-half back. as part of Ongoing investigation, additional authorities have requested information to me help with Investigation. We have fully cooperated and shared KYC and other details. The authorities were satisfied with our due diligence process.”
A Paytm spokesperson said the company “responded immediately” information The authorities seek. “we supporting law enforcement agencies, who They are investigating a specific matter set of merchants. The authorities have arrived out to me us with Instructions to provide some information About these scrutinized merchants, to which we immediately responded. We continue to cooperate with salads and remain Fully compatible,” the spokesperson said.
Cashfree said its operations adhere to PMLA guidelines. “we extended Our tireless cooperation in ED operations, we provide them required and necessary information on same day of Investigation. Our operations and onBoarding operations adhere to PMLA and KYC directives, and we will continue to do so in Time to follow a company spokesperson said.
ED investigates a case of non-banking financial Corporations (NBFCs) allegedly indulging in predatory lending practices in violation of RBI Guidelines. According to the agency, after its investigations began, there were many of these companies shut shop Transferring money through fintech companies to buy encryption assets which was then washed outside. In this regard, the executive inspected the workplace associated with WazirX Crypto and Frozen Exchange Rs 64 Crore in its accounts.
The ED claimed that NBFCs misused personal data and resorted to extreme tactics to extort high interest rates from those. who took loans.
In August 2020, the agency froze about Rs 47 crore belonging to a Chinese company operating illegal betting and loans apps in India. had a also Searches were conducted in 15 associated buildings with The Company, its directors and its chartered accountants across Delhi, Gurgaon, Mumbai and Pune.
Then the agency detained them online Payment gateways are responsible for “Laxness in due diligence” and “No reporting” of suspicious transactions.” It even claimed that “lax” auditing could have enabled hawala transactions.
According to the ED, some Chinese citizens have floated several companies in India with The help of Indian chartered accountants, using Indian directors to integrate them. These Chinese citizens later traveled to India and took over management, ED claimed.
“Some locals were hired and used to open their doors bank accounts with HSBC Bank and open trade accounts with online Wallets like Paytm, Cashfree, Razorpay, etc. online The governor had lax due diligence and non-reporting mechanisms of suspicious transactions to regulatory The authorities have helped the accused companies launch operations across India in a permit.
According to ED, after bank Internet accounts opened access The credentials were sent by the Indian employees to China, and the instructions for payment came from the owners there. The accused companies floated the number of Similar websites that were hosted Through Cloudfare, ED claimed.
Got these sites people to become members place bets on various online apps. a network of were the agents built to get new Client via Closed Telegram and WhatsApp groups, ED claimed. Referral codes were used for the invite new Individuals; this is also earned A committee for sponsor member.
“Paytm and Cashfree have been used for collection money And pay commission to all these agent. hundreds of Websites created to promote online Under-clothes bet of E-Commerce. Not all sites are activated daily. Some have been activated for Place bets and information on daily active Locations shared with Individuals using Telegram groups,” the ED said.
According to ED, she identified several bank Accounts, mostly held with HSBC Bank. I have claimed that two bank accounts of M/s Dokypay Technology Private Limited revealed that in The last one yearsaw the group account of 1,268 crores, of Which came in Rs 300 crore via Paytm, and transferred about Rs 600 crore out via Paytm. Another account, of M/s Linkyun Technolgy, revealed a similar pattern, ED said.
“that it also Detection of outgoing foreign remittances for Payments to the limit of 120 crores of these accounts. big unexplained financial Transactions also I have seen with Other Indian companies who they run online Chinese dating apps for Indian customers. There is no doubt about it, apart from indulging in Prohibited activities like online bet, this network of companies, with their dependence on online Conservative and lax regulatory systems can be used for Remittance transactions as well. ED is in the operation of get information From online “Portfolio Companies, HSBC, ROC and others,” the agency said.
ED said that this money laundering case based on No less than 18 information reports on the information provided by Electronic Police to the Bengaluru Police crime Station against “Many entities/persons in Connection with Share them in Extortion and harassment of The public who have benefited small amount of loans through mobile apps Universe run by those entities/persons.”
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Paytm, which has a large investment from China’s Alibaba, debuted on Indian Stocks last year And at that time of was to publish a market hat of 47.2 trillion rupees.
Razorpay was last worth $7.5 billion in December 2021 He gathered over 8 million companies including Facebook, Swiggy, Cred, National Pension System and Indian Oil are among its customers.
In June 2021, Cashfree . raised more From 35 million dollars of clutch of Investors including State Bank of India had a rating of 200 million dollars.
BillDesk, which was acquired by PayU, the Indian unit of Dutch Prosus Company for 4.7 billion dollars, is currently Biggest Payment Gateway in Country in terms of total Transactions, followed by Razorpay and Paytm. Relatively Cashfree small. else players in The market They include Infibeam, CCAvenues, CitrusPay, and InstaMojo.