Chinese loan app cases: ED attaches over Rs 76-cr assets
By PTI| Posted by Mansoor | Updated: 11th May 2021 9:18 pm IST
New Delhi: The ED has attached assets of over Rs 76 crore, including of some fintech companies “controlled” by Chinese nationals and fintech major Razorpay, as part of a money laundering probe against certain Chinese ‘loan app’ companies whose bullying tactics are alleged to have forced many debtors to end their lives during the stressful times of COVID-19.
The central probe agency said in a statement that its criminal investigation, under provisions of the Prevention of Money Laundering Act (PMLA), is based on multiple FIRs filed by the criminal investigation department (CID) Police in Bengaluru after they received “complaints from various customers, who had availed loans and faced harassment from the recovery agents of these money lending companies”.
Several borrowers complained to Bengaluru police that they faced harassment
The Enforcement Directorate has attached ₹76.67 crore lying in various bank accounts and payment gateways linked to some Chinese loan App companies and their Indian associates.
The ED’s money-laundering probe is based on various cases registered by the Bengaluru police, following complaints from several persons who had availed themselves of loans through the Apps and later faced harassment from recovery agencies of the lending companies.
The attached amount is linked to seven companies, of which three are Fintech firms named Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited. They are controlled by Chinese nationals, said the ED.
ED attaches Rs 76.67 crore of Chinese companies in instant loan app fraud cases
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Last Updated: May 11, 2021, 08:26 PM IST
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Synopsis The Fintech companies have agreement with respective NBFCs for disbursement of loans through digital lending apps. The amount attached by ED also include amount of fee charged by Razorpay Software Private Limited to the extent of Rs.86.44 lakhs for not conducting due diligence in case of one company enrolled with it for disbursement and collection of loans , the release said.
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The agency has claimed that it s probe revealed that these Chinese loan apps offered loans to individuals and levied usurious rate of interest and processing fees.