Chinese Loan Apps: Enforcement Directorate has taken major action against Chinese loan app companies. The Enforcement Directorate has seized Rs 46.67 crore lying in the accounts of online payment gateway companies like Easebuzz, Razorpay, Cashfree and Paytm of Chinese loan app companies. The money lying in the accounts of these gateway companies has been frozen under the Anti-Money Laundering Act.
This week the ED had raided the Chinese Investment Token App Company. Earlier, the probe agency had ordered for alleged irregularities in the operation of instant app-based lending companies “controlled” by Chinese individuals at the locations of Razorpay, Paytm and Cashfree in Bengaluru and subsequent confiscation of Rs 17 crore in accounts. Had given. The agency alleged that these companies use forged documents of Indian citizens to make them directors in a fake manner while these companies are controlled and operated by Chinese people. Apart from this, these companies which came under the scanner were raising money of crime by using merchant IT or accounts linked to payment service companies and banks and the addresses given by these companies are also fake.
At the same time, Paytm has denied reports that it was said that Paytm funds have been confiscated by the Enforcement Directorate. Paytm said in a regulatory filing that some merchant money has been confiscated at the behest of the Enforcement Directorate. None of these funds belong to Paytm or its group companies.
This is absolutely false news, as clarified by the same handle later. As mentioned in our exchange filing, ED instructed us to freeze certain amount from MIDs of specific merchant entities and none of these funds belong to Paytm or our group companies. pic.twitter.com/CAWKmnLGB5
— Paytm (@Paytm) September 16, 2022
Companies providing online payment services are under the scanner of ED since 2020. In fact, there were cases of suicides of customers taking loans from many states, after which the ED started investigation under PMLA. The police had also said that loan app companies intimidate the borrowers.