ED chargesheets Razorpay ,others in Chinese loan app case

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The federal probe agency said in a statement that the special Prevention of Money Laundering Act (PMLA) court based in Bengaluru has taken cognisance of the prosecution complaint filed by it (the agency).

ED chargesheets Razorpay — **Razorpay Software Private Limited, one of India’s leading payment gateways, has also been named in the charge sheet as an accused, the agency said.**

The Enforcement Directorate on Friday said it has filed a prosecution complaint against seven entities and five individuals involved in the Chinese loan app case before the Special PMLA Court in Bengaluru.

The court has taken notice of the complaint, the ED said. The accused entities include three fintech companies — Mad Elephant Network Technology Pvt Ltd, Baryonyx Technology Pvt Ltd and Cloud Atlas Future Technology Pvt Ltd. These companies are controlled by Chinese nationals.

The Enforcement Directorate has filed a chargesheet against 10 entities, including three NBFCs, a payment gateway and six individuals in connection with its money laundering probe in the IL&FS case.
The Enforcement Directorate has filed a chargesheet against 10 entities, including three NBFCs, a payment gateway and six individuals in connection with its money laundering probe in the IL&FS case. This includes X10 Financial Services Pvt Ltd, Track Fin-ed Pvt Ltd and Jamnadas Morarjee Finance Pvt Ltd, as well as payment gateway Razorpay Software Pvt Ltd.

The ED has attached Rs. 77.25 crore in the bank accounts and payment gateways of two companies in connection with a case of loan fraud. The ED has also initiated an investigation based on various FIRs registered by the CID in Bengaluru. The complaints were filed by customers who had taken loans from these companies and faced harassment from the recovery agents.

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An investigation conducted by ED has found that fintech companies are illegally working with NBFCs to disburse loans through digital lending apps. By using the names of these NBFCs, the fintech companies are able to earn commissions without being careful about their conduct.