The Enforcement Directorate has raided online payment gateways such as Razorpay, Paytm, and Cashfree as part of an ongoing probe against ‘illegal’ instant smartphone-based loans ‘controlled’ by Chinese persons.
These raids started on Friday at six premises in Karnataka’s capital city.
The ED said that had seized Rs 17 crore worth funds kept in ‘merchant IDs and bank accounts of these Chinese persons-controlled entities’ during the raids.
It said, “During the search operation, it is noticed that the said entities were generating proceeds of crime through various Merchant IDs/Accounts held with Payment Gateways/banks and they are also not operating from the addresses given on the MCA website/registered address and having fake addresses. An amount of Rs 17 Crore have been seized in merchant IDs and bank accounts of these Chinese persons-controlled entities.”
“During enquiries, it has emerged that these entities are controlled/operated by Chinese Persons. The modus operandi of these entities is by using forged documents of Indians and making them as dummy directors of those entities, they are generating proceeds of crime. It has come to notice that the said entities were doing their suspected/illegal business through various Merchant IDs/Accounts held with Payment Gateways/banks. The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled/operated by Chinese Persons are covered in the search operation,” the ED added.