On October 19, the Enforcement Directorate (ED) launched a raid at five locations in Bengaluru in accordance with the Prevention of Money Laundering Act’s (PMLA) provisions in relation to the Chinese lending app fraud case.
The case is based on 18 FIRs that the Cyber Crime Police Station in Bengaluru City filed against a number of organisations and individuals for their roles in extortion and harassment of those who had taken out minor loans using their mobile apps.
According to the ED, it has come to light during the investigation that Chinese nationals are in charge of and run these organisations.
The way these businesses operate is by using forged Indian-origin documents to make Indians look as fake directors while still collecting the proceeds of crime. The agency found that the abovementioned entities were using various merchant IDs and accounts with banks and payment gateways to carry out their illegal operations.
The search operation was carried out based on the results of the inquiry and suggestions made by Bengaluru’s Central Crime Branch. The search included Razorpay Pvt Ltd’s offices and those of the bank that deal with compliance for these firms.
The entities’ use of numerous merchant IDs, accounts held with payment gateways and banks, and the use of fake addresses in KYC documents were found during the operation, according to the financial investigation agency.
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