Business Standard

Chinese loan app case: ED seizes Rs 78 cr after searches at 5 places

The ED said it has recently carried out search operations at five places in Bengaluru, in connection with its investigation related to the Chinese loan app case

ED's scope of probe under PMLA increased 2.5 times in six years

IANS New Delhi
The Enforcement Directorate (ED) on Friday said it has recently carried out search operations at five places in Bengaluru, in connection with its investigation related to the Chinese loan app case.
An official said that the case is based on 18 FIRs registered by Cyber Crime Police Station, Bengaluru City against numerous entities and persons in connection with their involvement in extortion and harassment of the public who had availed small amounts of loans through the mobile apps being run by these entities.
During the investigation, it has emerged that these entities are controlled by Chinese nationals.
The modus operandi of these entities is using forged documents of Indians and making these them dummy directors of those entities and generating proceeds of crime.
It has come to notice that the said entities were doing their illegal business through various merchant IDs held with payment gateways and banks.
Based on the investigation conducted and inputs received from the Central Crime Branch, Bengaluru city, the search operation was carried out in this case.
The premises of Razorpay Pvt Ltd and the banks' compliance offices related to these entities were covered in the search operation.
During the search operation, it was noticed that the said entities were generating proceeds of crime through various merchant IDs held with payment gateways and they have submitted fake addresses in KYC documents.
"An amount of Rs 78 Crore has been seized under section 17(1) in merchant IDs and bank accounts of these Chinese persons-controlled entities. Total seizure, in this case, now stands is Rs 95 crore," the official said.
--IANS
atk/pgh
 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Oct 22 2022 | 7:12 AM IST

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