Enforcement agency has placed £ 76.67m in various bank accounts and payment gateways associated with some Chinese credit app companies and their Indian employees.
Illustration for display purposes (Siddhant Jumde)
The Enforcement Directorate (ED) has placed Rs 76.67 billion in funds in various bank accounts and payment gateways in connection with Chinese loan application companies and their Indian employees.
The amount attached by ED relates to seven companies, three of which are fintech companies – Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited, and Cloud Atlas Future Technology Private Limited – controlled by Chinese nationals and three NBFCs (non- Banking Financial Company), registered with RBI, namely X10 Financial Services Private Limited, Track Fined Private Limited and Jamnadas Morarjee Finance Private Limited.
“The fintech companies have reached an agreement with the respective NBFCs on the disbursement of loans via digital loan apps. The amount attached by ED also includes the amount of Razorpay Software Private Limited’s fee of Razorpay Software Private Limited of Rs 86.44 billion for failure to perform due diligence in the event that a company fails to disburse and collect loans ED is registered, ”said the ED.
ED claims this Chinese loan apps offered loans to individuals and charged usurious interest rates and processing fees. Later, through their recovery agents, the loan apps allegedly resorted to systematic abuse, harassment and threats of the defaulting parties by the call centers in order to forcibly get the loans back by retrieving and using sensitive data of the user stored on the cell phone, such as contacts, photos, and the borrower defame or blackmail.
“They even threatened borrowers by sending fake legal advice to relatives and family members. The investigation also found that the money lending business is actually being run by these fintech companies that they are not legally authorized to do, and these NBFCs knowingly let these fintech companies use their names to receive commissions without being careful about their behavior of these fintech companies in dealing with customers who are a vulnerable part of society and who urgently need funds due to the prevailing pandemic situation. The same applies to the RBI’s Fair Practices Code, ”added the ED
The ED had initiated its investigation based on various FIRs issued by the Criminal Investigative Department (CID) of the Bengaluru Police Department Received complaints from various customerswho had taken out a loan and was harassed by the remedial agent of these money lending companies.
Click here for IndiaToday.in full coverage of the coronavirus pandemic.
एक टिप्पणी भेजें