Chinese Loan App Case: ED made these companies including Razorpay accused, charge sheet filed

Pankaj Prasad
Enforcement Directorate
Enforcement Directorate

The ED's money laundering case is related to several FIRs registered by the Bengaluru Police CID.

The Enforcement Directorate (ED) on Friday said it has filed a chargesheet in a money laundering case against payment gateway Razorpay, three fintech companies controlled by Chinese nationals, several NBFCs and some others. 

The federal probe agency said in a statement that the Bengaluru-based moneyThe Special Court of Prevention of Money Laundering Act (PMLA) has taken cognizance of the prosecution complaint (charge sheet). 

has been made. The accused entities include fintech companies Mad Elephant Network Technology Pvt Ltd, Baryonyx Technology Pvt Ltd and Cloud Atlas Future Technology Pvt Ltd, which are "controlled" by Chinese nationals. Further, the accused companies are three Non-Banking Financial Companies (NBFCs) registered with RBI, namely X10 Financial Services Pvt Ltd, Track Fin-Aid Pvt Ltd and Jamnadas Morarji Finance Pvt Ltd. 

The agency said in the chargesheet that the payment gateway Razorpay SoftwarePvt. Ltd. is also named as an accused.

Related to several FIRs registered. These FIRs were registered on the basis of complaints received from customers who had taken loans and were harassed by the recovery agents of these money lending companies.
 
The probe found that the fintech companies had tied up with the respective NBFCs for disbursement of loans through digital lending apps. “The money lending business was actually being run illegally by these fintech companies and these NBFCs knowingly allowed these firms to use their names to get commission,” he said.

The agency had earlier issued two provisional attachment orders to freeze funds of Rs 77.25 crore held in bank accounts and payment gateways. Thereafter it was confirmed by the Adjudicating Authority of PMLA.