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Chinese loan App Banned in India 2022:ED freezes Rs 46-crore funds in Easebuzz, Razorpay, Paytm, Cashfree

Chinese loan Apps Banned in India 2022:ED freezes Rs 46-crore funds in Easebuzz, Razorpay, Paytm, Cashfree – Following searches this week targeting Chinese-controlled lending apps and investment tokens, the Enforcement Directorate announced on September 16 that it has frozen cash totaling Rs. 46.67 crore held in the payment gateways Easebuzz, Razorpay, Cashfree, and Paytm. In accordance with the anti-money laundering statute, the monies have been blocked.

On September 14, searches were initiated at several locations belonging to the suspects in Delhi, Mumbai, Ghaziabad, Lucknow, and Gaya. The federal agency stated in a statement that 16 bank and payment gateway locations in Delhi, Gurugram, Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur, and Bengaluru were encompassed by the probe into an app-based token called HPZ and related organisations.

The Kohima Police’s cybercrime section in Nagaland filed a FIR in October 2021, according to the statement, which is the basis for the money laundering case. Various damning papers were found and confiscated during the search, it claimed.

Large balances were discovered to be kept in the virtual accounts of the relevant parties with payment aggregators, according to the statement. “Rs 33.36 crore was found with Easebuzz Private Limited, Pune; Rs 8.21 crore with Razorpay Software Private Limited, Bangalore; Rs 1.28 crore with Cashfree Bill payment India Private Limited, Bangalore; and Rs 1.11 crore with Money Transfer Services Limited, New Delhi. The ED reported that a total of Rs 46.67 crore was found and frozen in many bank accounts and virtual accounts.

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Chinese loan Apps Banned in India 2022:ED freezes Rs 46-crore funds in Easebuzz, Razorpay, Paytm, Cashfree

According to the Easebuzz spokeswoman, who clarified the issue, “To be clear, none of the parties referenced in the ED’s announcement were a part of our merchant base, according to Easebuzz. Authorities only revealed the counterparties of the merchant utilising our payment gateway; we had already identified and blacklisted this merchant in advance of the inquiry, in accordance with our internal compliance and risk process.”

“We continue to give our attentive co-operation to the ED activities,” the representative for Cashfree Payments said. On the day of the inquiry, we were able to respond with the requested and essential information within a short time. Cashfree Payments’ operational and onboarding procedures complies with all applicable laws and regulations.

“We proactively stopped all those suspect companies and monies related with them and disclosed their information with authorities in relation to the ongoing investigation into a few suspicious businesses that conducted illicit activity through various payment gateways/banks roughly 1.5 years ago.

Razorpay does not own any of the money that the authorities have ordered frozen. As previously said, we will continue to give authorities the information they need to support this investigation “In a statement, the Razorpay representative added.

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