ED conducts searches in online micro-loan scam case

The agency has also seized ₹17 crore kept in the Merchant IDs and bank accounts of the entities that ran the Apps.

The Enforcement Directorate conducted searches at six Bengaluru locations linked to Razorpay Private Limited, Cashfree Payments, Paytm Payment Services Limited and entities controlled or operated by the suspects based in China, in connection with the micro-loan App case.

The agency has also seized ₹17 crore kept in the Merchant IDs and bank accounts of the entities that ran the Apps.

The investigation is based on 18 First Information Reports registered by the cyber crime police in Bengaluru City against a large number of entities and individuals for their alleged involvement in the extortion and harassment of those who had taken small loans through the mobile Apps run by them.

The agency alleges that these entities were controlled or operated by the suspects based in China. They used forged documents of Indian nationals and made them dummy directors.

“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 Private Limited, Cashfree Payments, Paytm Payment Services Limited and entities controlled/operated by Chinese persons are covered in the search operation,” said the agency.

During the searches, the ED found that the entities were allegedly generating proceeds of crime through the Merchant IDs/accounts and that they were also not operating from the addresses given on the Ministry of Corporate Affairs’ website. The accused had supplied fake addresses to the authorities concerned, according to the agency.