India agency searches payment firms in Chinese lending probe
NEW DELHI (Reuters) -India’s federal monetary crime-fighting company stated on Saturday it was looking the premises of on-line cost firms as a part of an investigation of Chinese language-controlled companies and people suspected of illicit lending practices.
The cost firms included Razorpay Pvt Ltd, Cashfree Funds and Paytm Cost Providers Ltd, the Enforcement Directorate stated in a press release.
“The premises of Razorpay Pvt Ltd, Cashfree Funds, Paytm Cost Providers Ltd and entities managed or operated by Chinese language individuals are coated within the search operation,” it stated.
The searches are a part of a probe involving a Chinese language mortgage app the place there have been allegations of extortion and harassment of shoppers who had taken out small loans, it added.
Chinese language managed entities and people have been accused by the Directorate of faking the identification of Indian firm administrators to launder the proceeds of crime.
The company seized 170 million Indian rupees ($2.13 million)in service provider IDs and financial institution accounts of entities managed by Chinese language individuals.
The Directorate didn’t identify the businesses or people that it seized the funds from.
The transactions have been performed through varied service provider accounts held with cost gateways and banks, it added.
Paytm’s mum or dad is One 97 Communications Ltd.
The searches have been being performed in India’s tech metropolis Bengaluru.
“A few of our retailers have been being investigated by regulation enforcement a few 12 months and a half again. As a part of the continued investigation, the authorities requested extra info to assist with the investigation,” a Razorpay spokesperson stated in a press release to Reuters.
Razorpay stated it has shared different particulars with the authorities.
Paytm stated regulation enforcement companies are investigating a particular set of retailers and so they reached out to the corporate to offer sure details about these retailers below scrutiny.
“We proceed to cooperate with the authorities and stay absolutely compliant,” it added.
Cashfree didn’t reply to Reuters requests for feedback.
($1 = 79.7170 Indian rupees)
(Reporting by Aftab Ahmed and Munsif Vengattil; enhancing by William Mallard and Jason Neely)
