Enforcement Directorate attaches assets of loan app companies
Hyderabad: The Directorate of Enforcement (ED) has provisionally attached assets worth Rs.6.17 crore of persons behind instant loan app companies in different accounts and merchant IDs held in various fintech companies and maintained with various banks and payment gateways. The ED had earlier initiated investigation into two FIRs booked in the Marathahalli and Mahalakshmipuram police […]
Hyderabad: The Directorate of Enforcement (ED) has provisionally attached assets worth Rs.6.17 crore of persons behind instant loan app companies in different accounts and merchant IDs held in various fintech companies and maintained with various banks and payment gateways.
The ED had earlier initiated investigation into two FIRs booked in the Marathahalli and Mahalakshmipuram police stations in Bengaluru in connection with instant loan app frauds.
Officials said investigation revealed that the accused persons in the case along with Chinese nationals had opened various companies in 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.
“These companies were incorporated during the Covid pandemic time with common addresses and active involvement of some Chinese nationals in connivance with certain Indian chartered accountants. KYC documents of young Indians in need of money were taken and they were made directors or shareholders in these companies,” they said.
The bank accounts were being operated mainly by Chinese nationals on whose instructions the said companies were incorporated. The accounts and payment gateways opened on the basis of KYC documents of Indian nationals were used to provide loans to the public with high processing fees and usurious interest rates being charged. For recovery of loans, unethical ways were adopted.
“These short-term loans were provided using funds received from abroad, mainly China, with the intention of charging usurious rates of interest. Investigation also revealed that these companies have layered and remitted the funds abroad,” officials said.
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