NEW DELHI: The Directorate of Enforcement (ED) is carrying out search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 since Friday at 18 premises across the country including Bengaluru, Hyderabad, and Delhi, in respect to an investigation related to the Chinese Loan App Case.

The case is based on 18 Nos of FIRs registered by Cyber Crime Police Station, Bengaluru City against numerous entities/persons in connection with their involvement in extortion and harassment of the public who had availed small amount of loans through the mobile apps being run by Chinese persons.

According to a press release by the ED, the modus operandi of these entities is by using forged documents of Indians and making them as dummy directors of those entities, and generating proceeds of the crime. It has come to notice that the said entities were doing their illegal business through various Merchant IDs/Accounts held with Payment Gateways/banks.

The premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled/operated by Chinese Persons were also searched during the operation.

The ED said that said entities were generating proceeds of crime through various Merchant IDs/Accounts held with Payment Gateways/banks and they are also not operating from the addresses given on the MCA website/registered address and having fake addresses. An amount of Rs 17 Crore have been seized in merchant IDs and bank accounts of these Chinese persons-controlled entities. (Enforcement Directorate Press Release)

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