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
SECTIONS
Last Updated: May 11, 2021, 08:26 PM IST
Share
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.
Agencies
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.