On Wednesday Reuters quoted CNBC TV-18 on the raids conducted by Enforcement Directorate on many monetary organisation premises. ED searches at online payment gateways including Razorpay, Paytm, and Cashfree Payments in Bengaluru were part of a continuing investigation into “illegal” immediate smartphone-based loans “managed” by Chinese individuals. The searches were conducted in six different places within Bangalore.
A Paytm spokeswoman responded to the situation by saying, “As we have previously indicated, ED continues to request information about specific merchants from different payment service providers, and we have supplied the needed information.”
The federal agency has routinely conducted raids and searches at several Chinese-owned businesses with offices in Mumbai, Delhi, Bangalore, etc. According to CNBC TV 18, the people involved in the searches are being held. According to the allegations made by the ED, the method used by these businesses is to create fake directors using falsified Indian documents, which generates “proceeds of crime.”
The agency claimed that the entities under investigation were operating from “fake” addresses in addition to using multiple merchant IDs and accounts with payment gateways and banks to generate proceeds of crime. They also claimed that the entities under investigation were not using the registered addresses listed on the MCA (ministry of corporate affairs) website.