The federal agency conducted the raids under provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Saturday.
Enforcement Directorate (ED) raids on Bengaluru-based online payment gateways Paytm, Razorpay, and Cashfree continued for the second consecutive day, leading to the seizure of Rs 17 crores in funds in an ongoing probe against “illegal” Chinese loan apps. The searches were launched Friday at six premises in Karnataka’s capital city, and the search operations were still in progress. The federal agency conducted the raids under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The case is based on 18 FIRs registered by the Cyber Crime Police Station in Bengaluru City against numerous entities and persons in connection with their involvement in extortion and harassment of the public who had availed of small amounts of loans through the mobile apps.
The federal agency Saturday said during the search operations it was noticed that the Chinese firms were generating ‘proceeds of crime’ through various merchant IDs and accounts held with payment gateways and banks. Moreover, the companies were not operating from the addresses listed on the MCA website or registered addresses. Most of them had fake addresses.
“The modus operandi of these entities is that they use forged documents of Indians and make them dummy directors, leading to the generation of proceeds of crime. “These entities are controlled/operated by Chinese persons,” said ED in a statement.