Ed Says Charge Filed Against Razorpay, Fintech Firms, Nbfcs
The special PMLA court in Bengaluru has taken cognizance of the complaint, the ED said. The investigating agency said in a statement that during the investigation it was revealed that the moneylending business is being run illegally by the fintech companies and the NBFCs deliberately allowed the fintech companies to use their names to get commission without being careful about their conduct. of these fintech companies. “The same is also a violation of RBI’s Fair Practices Guidelines,” it added.
The Enforcement Directorate (ED) on Friday said it has filed a chargesheet against a total of seven entities and five firms involved in the Chinese loan app case under the Special Prevention of Money Laundering Act (PMLA) in Bengaluru.
The court has taken cognizance of the complaint, the ED said. According to the investigating agency, the accused entities include three fintech companies – Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited – controlled by Chinese nationals, three NBFCs registered with the RBI – X10 Financial Services Private Limited , Track Fin-ed Private Limited and Jamnadas Morarjee Finance Private Limited – and one payment gateway Razorpay Software Private Limited.
“Earlier, the ED had issued two provisional attachments and attached Rs.77.25 crore in this case lying in the bank accounts and payment gateways and the same has been confirmed. Investigations conducted by the ED revealed that the fintech companies have an agreement with the respective NBFCs for disbursement of loans through digital loan apps,” the agency said in a statement.
The statement added that during the investigation, it was revealed that the moneylending business is being conducted illegally by these fintech companies and that these NBFCs deliberately allowed the fintech companies to use their names to get commission without being careful about the behavior of these fintech companies. companies. “The same is also violation of RBI’s Fair Practices Guidelines,” the statement added.
The ED had initiated investigation based on various FIRs registered by the CID, Bengaluru based on the complaints received from a number of customers who had availed loans and faced harassment from the recovery agents of these money lending companies.
The ED started tracking the new mode of crime in September last year, after it searched the Bengaluru-based premises of payment gateways like Paytm, Razorpay and Cashfree as part of this investigation. The agency also searched 16 other premises of banks and branches and offices of payment gateways in Delhi, Gurgaon, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur and Bengaluru in connection with the case.
