ED Raids Paytm, Razorpay, Cashfree Premises, Seizes Rs 17 Cr In Crackdown On Chinese Loan Sharks

According to the ED, this case of investigation is based on 18 FIRs registered by the Cyber Crime Police Station, Bengaluru.

Indian car park attendant stands beside a bag with a logo advertising Indian electronic and cellphone-based payment system Paytm outside a parking area in New Delhi (Source: File photo/AFP)

New Delhi: Enforcement Directorate on Saturday raided the offices of online payment gateways- Razorpay, Paytm, Cashfree in Bangalore. According to the PTI report, the investigating agency seized Rs 17 crore kept in "merchant IDs and bank accounts of these Chinese persons-controlled entities," during the raids. 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", it alleged.

"These entities are controlled/operated by Chinese persons," it said.

"It has come to notice that the said entities were doing their suspected/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 are covered in the search operation," the ED said.

Meanwhile, Cashfree Payments’ spokesperson told ABP LIVE, "We extended our diligent co-operation to the ED operations, providing them the required and necessary information on the same day of enquiry. Our operations and onboarding processes adhere to the PMLA and KYC directions, and we will continue to do so." 

According to the ED, it has come to notice that these entities were carrying on their suspicious/illegal business through accounts maintained with different merchant IDs, payment gateways/banks.

The ED said its money laundering case is based on at least 18 FIRs filed by the Bengaluru Police cyber crime station 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 those entities/persons."

This FIR has been registered against several entities/individuals. In this, it is alleged that institutions or individuals are extorted and harassed by people taking loans of small amounts through mobile apps.

The ED said that the premises of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and entities controlled/ operated by Chinese persons have been included in the search operation.

(With PTI Inputs)