Paytm Razorpay Cashfree online payment companies offices raided by ed Big fraud revealed in the investigatPaytm

ED raids Paytm, Razorpay and Cashfree offices- India TV Hindi News
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ED raids Paytm, Razorpay and Cashfree offices

Highlights

  • RazorPay, Paytm and Cashfree’s Bangalore offices raided
  • Investigation into alleged irregularities in instant loan allocation
  • Big fraud revealed in Enforcement Directorate’s investigation

The Enforcement Directorate (ED) on Saturday said it is probing alleged irregularities in app-based instant loan allocation to Chinese nationals ‘controlled’. In this connection, raids have been conducted at 6 premises of online payment platforms Razorpay, Paytm and Cashfree in Bangalore. The probe agency said that the search operation started on Friday at six premises of these companies located in the capital of Karnataka and is still going on. “The searches were conducted at Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd and other companies controlled or operated by Chinese persons,” the ED said in a statement.

Big fraud revealed in the investigation

The ED said that Rs 17 crore deposited in “merchant IDs and bank accounts” of these companies controlled by Chinese individuals have been seized in the raids. The agency alleged that these companies are using forged documents of Indian nationals to make them directors in a fraudulent manner while these companies are controlled and operated by Chinese people. The ED official said that these companies under the scanner were raising money from the crime by using merchant IDs or accounts linked to payment service companies and banks and the addresses given by these companies were also fake.

What Paytm, Razorpay and Cashfree said on ED raids
In this regard, Razorpay, Cashfree and Paytm have said in their response that they are cooperating fully with the investigating agency. Paytm spokesperson said that we are cooperating with law enforcement agencies, which are investigating a particular group of merchants. As part of the investigation, officials reached out to us to get some information about these merchants, to which we responded immediately. Paytm spokesperson further said that we will continue to cooperate with the authorities and will be fully compliant. A Razorpay spokesperson said, “Some of our merchants were investigated by law enforcement about a year and a half ago. The authorities asked us for additional information in connection with the ongoing investigation in this regard. We cooperated fully and gave them the KYC and other details. The officials were satisfied with this.” Cashfree Payments said that full cooperation was extended to the ED’s operation and necessary information was given to them on the day of investigation itself.

How did these companies come on ED’s radar?
Companies providing online payment services are under ED’s attention since 2020, when the outbreak of Kovid-19 started. In fact, cases of suicides of customers who took loans from many states had come to the fore, after which the ED started investigation under the Prevention of Money Laundering Act. The police had also said that loan app companies are intimidating the borrowers.

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