ED Ties Rs 76.67 crore of Chinese Firms in Instant Loan Application Fraud Cases

The Enforcement Directorate (ED) issued a provisional seizure order under the Prevention of Money Laundering Act 2002 (PMLA) tying Rs. 76.67 Crore, lying in various bank accounts and payment gateways regarding Chinese loan application companies and their Indian associates, the agency said in a statement on Tuesday.

The federal agency had opened an investigation on the basis of various FIRs registered by CID, Bengaluru, based on complaints received from various clients, who had benefited from a loan and had been harassed by the debt collector of these. money lending companies.

The amount attached by ED concerns 7 companies of which three are Fintech companies namely Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by Chinese nationals and three NBFCs registered with RBI namely X10 Financial Services Private Limited, Track Fin-ed Private Limited and Jamnadas Morarjee Finance Private Limited.

“The companies have an agreement with the respective NBFC for the disbursement of loans via digital loan applications. The amount attached by ED also includes the amount of fees charged by Razorpay Software Private Limited to the amount of Rs.86.44 lakhs for ne not having done due diligence in the event a company has registered with it for the disbursement and collection of loans, “the statement said.

The agency claimed that its investigation revealed that these Chinese loan apps offered loans to individuals and charged usurious interest rates and processing fees.

“Loan applications through their debt collectors have resorted to systematic abuse, harassment and threats against defaulters through call centers for coercive loan collection by obtaining sensitive data from the bank. user stored on the mobile such as contacts, photographs and using them to defame or blackmail the borrower, ”the agency said.

He added: “They even threatened borrowers by sending false legal notices to their relatives and family members. The NBFCs knowingly let these FinTech companies use their name to earn a commission regardless of the conduct of these FinTech companies in their dealings with customers who are a vulnerable part of society and in dire need of cash. due to the current pandemic situation. The same is also a violation of the RBI Code of Fair Practices ”


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