ED’s action: The Enforcement Directorate (ED) has raided the premises of online payment platforms Razorpay, Paytm and Cashfree in Bengaluru. The ED said on Saturday that the raids were conducted in connection with its probe into alleged irregularities in app-based fast loan allocation under “control” of Chinese nationals. The probe agency said that the search operation started on Friday at the premises of these companies located in Bengaluru, the capital of Karnataka.
ED gave information about the investigation
ED said in a statement, “The searches were conducted at Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and other companies controlled or operated by Chinese persons.”The Enforcement Directorate said that in the raids these companies controlled by Chinese persons “Merchant ID and bank accounts” Rs 17 crore deposited in Rs. 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 under investigation were raising money from the crime using merchant IT or accounts linked to payment service companies and banks and the addresses given by these companies are also fake.
What Paytm said
Paytm spokesperson said in this context, “We are cooperating with law enforcement agencies. Some merchants are under their scanner, about whom the agencies had sought information from us.” Razorpay and Cashfree also said that they are cooperating fully with the investigating agency.
what Razorpay said
Razerpay spokesperson said, “Some of our merchants were investigated by law enforcement about a year and a half ago. In connection with the ongoing investigation in this regard, the officials asked us for additional information. We cooperated fully and gave them the KYC and other details. This satisfied the officers.”
What Cashfree said
Cashfree Payments said that ED’s operation was fully supported and necessary information was given to them on the day of investigation itself.
ED’s eye on online loan apps
Companies providing online payment services have been under ED’s attention since 2020, when the outbreak of Kovid-19 started. In fact, cases of suicides of customers who took loans from many states were reported, after which the ED started investigation under the Prevention of Money Laundering Act- (PMLA). The police had also said that loan app companies intimidated the borrowers.