New Delhi: ED team has raided the office of online payment gateway- Razorpay, Paytm, Cashfree in Bengaluru. These raids have been carried out in connection with the ongoing investigation against the illegal smartphone app Loan. According to the information given by the ED, the search operation which started in six premises on Friday is still going on.
Seized money worth Rs 17 crore
The federal probe agency said it had seized money worth Rs 17 crore held in “trader IDs and bank accounts of entities controlled by these Chinese individuals” during the raid. The modus operandi of these entities is that they use forged documents of Indians and make them dummy directors thereby generating “crime proceeds”.
Apps offer small loans in few minutes
It has been found in the investigation that these companies were doing their illegal business with the help of payment gateways and accounts with banks and merchant IDs. These apps used to offer people small loans in a few minutes, although in return they used to take all the information present in the mobile, which they were using to grab money from people.
ED’s investigation is underway
ED is finding out who else was helping the Chinese nationals in this fraud. According to the ED, this case of investigation is based on 18 FIRs registered by the Cyber Crime Police Station, Bengaluru.
This FIR has been registered against several entities/individuals. In this, it is alleged that institutions or individuals are extorted and harassed by people taking loans of small amount through mobile app.