Chinese Loan Apps Fraud: Indian Agency Raids Razorpay, Paytm, Cashfree

 

On Saturday, The Indian law Enforcement Directorate agency (ED) carry out raids at nine premises connected to online payment gateways including Paytm, Cashfree, and Razorpay in Bengaluru. Also, some of these companies are believed to be involved in illegal betting. 
The official said the raids were conducted in connection with a money laundering case — part of an ongoing investigation against some illegal loan apps allegedly run by Chinese Nationals. 
The ED reported that the law enforcement agency successfully seized Rs 17 crore kept in “merchant IDs and bank accounts of these Chinese persons-controlled entities” during the raids. 
In a statement, a Razorpay spokesperson said: “Some of our merchants were being investigated by law enforcement about a year-and-a-half back. As part of the ongoing investigation, the authorities requested additional information to help with the investigation. We have fully cooperated and shared KYC and other details. The authorities were satisfied by our due diligence process”. 
Furthermore, the agency added that after it started working on probes, many of these companies shut down their business and diverted funds through fintech companies to buy crypto assets so the money could be laundered abroad. 
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