The Enforcement Directorate (ED) has filed a charge sheet in connection with the investigation into the money laundering case related to the Chinese loan app. The agency has filed a charge sheet against payments app Razorpay, three fintech firms controlled by Chinese nationals, three NBFCs and others. It is alleged that the Chinese loan app has cheated many people. The central probe agency said in a statement that the Special Prevention of Money Laundering Act (PMLA) court in Bengaluru has taken cognizance of the prosecution complaint (chargesheet). A total of seven entities and five individuals have been named as accused in the charge sheet. The accused entities include three 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.
Three Non-Banking Financial Companies (NBFCs) registered with RBI namely X-10 Financial Services Pvt Ltd, Track Fin- Aid Pvt Ltd and Jamnadas Morarji Finance Pvt Ltd have also been named as accused. The agency said that payment gateway Razorpay Software Limited has also been included in the charge sheet. The ED registered the money laundering case on the basis of several FIRs registered by the CID of the Bengaluru Police.
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what was said in the charge sheet
Earlier, the ED had issued two attachment orders in this case lying in bank accounts and payment gateways and seized Rs 77.25 crore. The ED had initiated the probe on the basis of various FIRs registered by the CID, Bengaluru on the basis of complaints received from various customers who had taken loans and faced harassment from the recovery agents of these money lending companies. The ED probe has revealed that the fintech companies have tie-ups with the respective NBFCs for disbursement of loans through digital lending apps.
The charge sheet states that during investigation it was found that in fact money lending business is being carried on illegally by these fintech companies and these NBFCs are knowingly indulging in illegal activities for receiving commission without alerting them about the conduct of these fintech companies. Let us use your name for. It is also in violation of the Fair Practices Code of RBI. Further investigation is on in the matter.
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