ED files chargesheet against Razorpay, fintech firms in money laundering probe linked to Chinese loan apps

The Enforcement Directorate on Friday said it has filed a charge sheet against payment gateway Razorpay, three fintech companies and several NBFCs controlled by Chinese nationals and some others in a money laundering probe linked to a Chinese loan app that allegedly defrauded several people. Had given.

The federal probe agency said in a statement that a special Prevention of Money Laundering Act (PMLA) court in Bengaluru has taken cognizance of the prosecution’s complaint (chargesheet).

A total of seven entities and five individuals have been named as accused in the charge sheet.

The accused entities include fintech companies Mad Elephant Network Technology Pvt Ltd, Baryonyx Technology Pvt Ltd and Cloud Atlas Future Technology Pvt Ltd, which are “controlled” by Chinese nationals and three non-banking financial companies (NBFCs) registered with the RBI, Whose name is X10 Financial Services. Private Limited, Track Fin-Aid Private Limited and Jamnadas Morarji Finance Private Limited.

The agency said that payment gateway Razorpay Software Pvt Ltd has also been named as an accused in the charge sheet.

The ED’s money laundering case stems from several FIRs by the Bengaluru Police CID, which were filed on the basis of complaints received from various customers who had taken loans from the recovery agent of these money-lending companies and alleged “harassment”. was faced

According to the ED, the investigation found that the fintech companies had “agreement with the concerned NBFC for disbursement of loans through digital lending apps”.

“The business of money lending was actually being run illegally by these fintech companies and these NBFCs knowingly let these firms use their names to get commission without being careful about their conduct. This is fair practice There is also a violation of the code of the Reserve Bank of India,” the agency said.

The agency had earlier issued two provisional attachment orders to freeze funds worth Rs 77.25 crore held in bank accounts and payment gateways, which were later confirmed by the adjudicating authority of the PMLA.

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