The Enforcement Directorate (ED) on Saturday raided the Bangalore offices of online payment gateways Paytm, Razorpay, and Cashfree. ED has conducted this raid in the offices of these three companies in the case of the Chinese loan app. The ED has taken this action on these three companies as part of the ongoing investigation against illegal instant smartphone-based loans being controlled by the people of China.
According to reports, the raids were conducted at six locations of the three companies in Bangalore. The matter is related to the Prevention of Money Laundering Act (PMLA). ED said that the raid started on Friday and is still going on.
ED seized Rs 17 crore,
ED said in a statement that searches have been conducted in Razorpay Pvt Ltd, Cashfree Payments and Paytm Payment Services Ltd, and other companies controlled and operated by Chinese persons. In the raids, Rs 17 crore deposited in the merchant ID and bank accounts of these companies have been confiscated by the people of China.
The ED alleged that these companies, by using forged documents of Indian nationals, make them directors in a fraudulent manner. Whereas these companies are controlled and operated by the people of China.
Companies were raising illegal money
ED said that these companies under investigation were raising money illegally using merchant IDs and accounts linked to payment service companies and banks and the addresses given by these companies are also fake.
The ED further said in its statement that these entities are doing illegal business in India. For this, different merchant IDs and accounts are used. These IDs belong to Paytm, Razorpay, and Cashfree. This is the reason that raids have been conducted on the premises of all three companies.
The case of extortion from the general public
The case was registered by the Cyber Crime Police Station, Bangalore. According to the FIR, extortion and harassment was being done from the general public by different entities and persons.
Source: Bhaskar News