ED carried Search and Seizure Operation relates to Chinese Loan App Fraud Case

The Directorate of Enforcement (ED) has been carrying out search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 on 02.09.2022 at 06 premises in Bengaluru, in respect to an investigation relating to the Chinese Loan App Case.

The case is based on 18 FIRs that the Cyber Crime Police Station in Bengaluru City filed against various businesses and individuals for their roles in extortion and harassment of members of the public who had obtained modest loans through the mobile apps they operated.

During enquiries, it has emerged that these entities are controlled/operated by Chinese Persons. These entities operate in a way that generates criminal revenue by using falsified Indian documents and posing as their fictitious directors. It was discovered that the aforementioned businesses were operating their alleged unlawful operation through a number of Merchant IDs and Accounts with banks and payment gateways.

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.

During the search operation, it was discovered that the aforementioned entities were using a variety of Merchant IDs and accounts with banks and payment gateways to generate proceeds of crime. They were also operating from fictitious addresses rather than the addresses listed on the MCA website or registered addresses.

An amount of Rs.17 Crore have been seized in merchant IDs and bank accounts of these Chinese persons-controlled entities.

The search operation is in progress.