The Enforcement Directorate (ED) has filed a prosecution complaint against seven entities and five individuals involved in the Chinese loan app case before the Special PMLA Court in Bengaluru.
The ED has alleged that Razorpay, a digital payments company, facilitated transactions for the Chinese loan apps and received a commission for the same. The chargesheet also names executives of Razorpay and other companies for their alleged involvement in illegal lending activities.
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.
The Chinese loan app case came to light last year when several Chinese apps were found to be involved in illegal lending activities in India, charging exorbitant interest rates and using coercive tactics to recover the loans. The Indian government subsequently banned several of these apps, citing concerns over data security and the potential for financial fraud.
Earlier, the ED had issued two provisional attachment orders and attached Rs 77.25 crore lying in the bank accounts and payment gateways in the case.
The chargesheet against Razorpay and others in the Chinese loan app case underscores the need for greater vigilance and regulation in the digital payments sector. As more and more transactions move online, it is important for companies to ensure that they are not unwittingly facilitating illegal activities or putting their customers at risk. The case also highlights the importance of cross-border cooperation in fighting financial fraud and other crimes, particularly in the increasingly interconnected world of digital commerce.
