ED ties up Rs 6.7 million assets from app lending companies – The New Indian Express

By Express press service

BENGALURU: The Enforcement Directorate (ED) has provisionally seized assets worth Rs 6.17 crore from various fintech (fintech) companies under the Prevention of Money Laundering Act 2002 Money (PMLA) in a case of providing mobile app-based loans to gullible Indians during the economic crisis caused by the Covid pandemic.

The ED had initiated the investigation based on two separate FIRs registered by Marathahalli and Mahalakshmipuram police stations in Bengaluru under various sections of the Indian Penal Code (IPC), the Central Enforcement Agency said. of the law in an official statement on Wednesday.

The investigation revealed that “the accused along with certain Chinese nationals opened various companies on behalf of various people for the purpose of carrying out illegal transactions, issuing loans and increasing investments through mobile applications, like Cash Master, Krazy Rupee, Cashin, Rupee Menu, etc,” the central agency said.

Explaining the modus operandi used by the fraudsters, the ED said: “These companies were incorporated during Covid at common addresses through the active involvement of some Chinese nationals in collusion with some Indian chartered accountants, who helped by using Know Your Customer (KYC) documents of young Indian nationals in need of money, who have been appointed directors/shareholders of these companies,” the ED said. Fintech companies have used their own funds received from abroad, mainly from China, to issue short-term loans through non-bank financial companies (NBFCs), the agency added.

Account numbers/payment gateways opened on the basis of KYC documents of these Indian nationals were used to make the loans, and “heavy processing fees and usurious interest rates” were charged, the government said. Ed. The companies also took unethical measures to recover the loan amount and high interest rates.

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