ED acts against Chinese fintech firms
NEW DELHI: In the latest action against fintech companies controlled by Chinese, who had been providing short term loans and were allegedly involved in money laundering, the Enforcement Directorate (ED) on Wednesday said that it has attached assets worth Rs 6.17 crore lying in various accounts, merchant IDs belonging to the accused companies and persons.
This was done in connection with an ongoing probe in a Prevention of Money Laundering case. The ED initiated the money laundering investigation on the basis of two separate FIRs registered at the Marathahalli Police station and the Mahalakshmipuram Police Station, Bengaluru, under various sections of the IPC.
The ED learnt during the investigation that the accused persons along with Chinese nationals opened various companies in the names of different persons for the purpose of illegal transactions, issuing loans and raising investments through mobile Apps like Cash Master, Krazy Rupee, Cashin, Rupee Menu etc.
“Notably, these companies have been incorporated during Covid time at common addresses by active involvement of some Chinese nationals in connivance with certain Indian chartered accountants who helped in the incorporation of these companies by using KYC documents of young Indian nationals in need of money who were made directors, shareholders in these companies. The bank accounts of the companies were being operated, controlled by mainly the Chinese nationals on whose instructions the said companies were incorporated,” said an ED official.