The Directorate of Enforcement (ED) today said it has filed a prosecution complaint against 7 companies and 5 individuals involved in the Chinese Loan App case before the Special PMLA Court, Bengaluru.
According to a release, The accused entities include three Fintech companies, namely Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited, which are controlled by Chinese nationals, three NBFCs registered with RBI, namely X10 Financial Services Private Limited, Track Fin-ed Private Limited and Jamnadas Morarjee Finance Private Limited and one Payment gateway, Razorpay Software Private Limited.
Earlier, ED issued two provisional attachment orders and attached Rs77.25 crore, in this case, lying in the bank accounts and payment gateways.
Further, ED said it had initiated an investigation based on the various FIRs registered by CID, Bengaluru, based on the complaints received from various customers who had availed loans and faced harassment from the recovery agent of these money lending companies.
"Investigation conducted by ED revealed that the Fintech companies have agreement with respective NBFCs for disbursement of loans through digital lending apps. During investigation, it was revealed that the money lending business is being illegally run by these Fintech companies actually and these NBFCs knowingly let these fintech companies to use their names for the sake of getting commission without being careful about the conduct of these fintech companies. The same is also violation of the Fair Practices Code of RBI," ED said in a release.
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