Chinese loan apps: ED freezes ₹46-cr worth funds kept in payment gateway accounts

PTI | | Updated on: Sep 16, 2022

The funds have been frozen under the anti-money laundering law

The Enforcement Directorate on Friday said it has frozen ₹46.67 crore worth funds kept in payment gateways Easebuzz, Razorpay, Cashfree and Paytm after it carried out raids this week against Chinese-controlled loan apps and investment tokens.

The funds have been frozen under the anti-money laundering law.

The searches were launched on September 14 at multiple premises of the accused in Delhi, Mumbai, Ghaziabad, Lucknow and Gaya.

Sixteen premises of banks and payment gateways in Delhi, Gurugram, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur and Bengaluru in respect of an investigation related to an app-based token named HPZ and related entities were also covered, the federal agency said in a statement.

The money laundering case stems from an October, 2021 FIR filed by the cyber crime unit of Kohima Police in Nagaland, it said.

"During the search, various incriminating documents have been recovered and seized," it said.

"Huge balances were found to be maintained in the virtual accounts of the involved entities with payment aggregators like ₹ 33.36 crore was found with Easebuzz Private Limited, Pune, ₹8.21 crore with Razorpay Software Private Limited, Bangalore, ₹1.28 crore with Cashfree Payments India Private Limited, Bangalore and ₹1.11 crore with Paytm Payments Services Limited, New Delhi," it said.

An amount ₹46.67 crore was detected and freezed in various bank accounts and virtual accounts, the ED said.

Published on September 16, 2022
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