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ED Raids Paytm and Razorpay Offices in Bengaluru in Connection with Fake Loan Apps

The Enforcement Directorate is continuously chasing the companies associated with illegal Chinese-based fake loan apps in India. In a recent search, the ED raided two popular firms in Karnataka’s Bengaluru.

ED Raids Paytm, Razorpay, and Cashfree

ed raids paytm

The search operation began on Friday when ED raided Razorpay and Paytm offices and it continued till Saturday. Both companies were investigated as per the provisions of Prevention of Money Laundering Act (PMLA) 2022.

ED also conduct a raid on another Bengaluru-based company Cashfree. It is an online platform for businesses to carry out transactions including on-demand payments, payment collection, and more.

Also Read: Fake Google Translate App Mining Crypto

Chinese Entities Are Behind the Fake Loan Apps in India

fake loan apps

The raid was based on the 18 FIRs filed in Bengaluru. In this regard, the police said cases were filed against organizations involved in harassing and extorting the public in name of giving instant loans through mobile applications.

All such fraud applications were controlled by Chinese entities. During the raid, ED recovered around Rs 17 Crore from the merchant IDs and bank accounts.

The Chinese entities in India were conducting illegal activities by forging documents of Indians. They used their documents to show them as dummy directors of the organization.

ed raids paytm

Furthermore, the investigation revealed that the entities were not operating from the mentioned addresses on the website of the Ministry of Corporate Affairs.

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