ED attaches assets worth Rs 76 Crore in Chinese loan app scam
ED attaches assets worth Rs 76 Crore in Chinese loan app scam
The Enforcement Directorate has attached ₹76.67 crore lying in various bank accounts and payment gateways linked to some Chinese loan App companies and their Indian associates.
advertisement
Illustration for representational purposes (Siddhant Jumde)
The Enforcement Directorate (ED) has attached money to the tune of Rs 76.67 crore, lying in various bank accounts and payment gateways, in connection with Chinese loan application companies and their Indian associates, officials said.
The amount attached by ED pertains to seven companies, out of which three are fintech companies Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by the Chinese nationals and three NBFCs (Non-Banking Financial Company) registered with RBI namely X10 Financial Services
Highlights
Many customers who had availed loan faced harassment
Bengaluru: Enforcement Directorate (ED) has attached Rs 76.67 crore lying in various bank accounts and payment gateways pertaining to Chinese loan app companies and their Indian associates.
The provisional attachment order was issued under the Prevention of Money Laundering Act, 2002 (PMLA).
The agency initiated an investigation on the basis of various FIRs registered by CID, Bengaluru on the complaints received from various customers who had availed loan and faced harassment from the recovery agents of the money lending companies.
The amount attached by ED pertains to seven companies out of which three are Fintech companies namely Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by the Chinese nationals and three NBFCs registered with RBI namely X10 Financial Services Private Limited, Track Fin-ed Private Limi
ED attaches assets worth over Rs 76 cr of Chinese loan app companies ANI | Updated: May 11, 2021 23:27 IST
New Delhi [India], May 11 (ANI): The Enforcement Directorate (ED) on Tuesday issued a Provisional Attachment Order under the Prevention of Money Laundering Act, 2002 (PMLA) attaching Rs 76.67 Crore, lying in various bank accounts and payment gateways pertaining to Chinese Loan App companies and their Indian associates.
The ED initiated investigation on the basis of various FIRs registered by CID, Bengaluru based on the complaints received from various customers, who had availed loan and faced harassment from the recovery agent of these money lending companies.
The amount attached by ED pertain to 7 companies out of which three are Fintech companies namely Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by the Chinese nationals and
ED attaches Rs 76.67 crore of Chinese companies in instant loan app fraud cases
SECTIONS
Last Updated: May 11, 2021, 08:26 PM IST
Share
Synopsis The Fintech companies have agreement with respective NBFCs for disbursement of loans through digital lending apps. The amount attached by ED also include amount of fee charged by Razorpay Software Private Limited to the extent of Rs.86.44 lakhs for not conducting due diligence in case of one company enrolled with it for disbursement and collection of loans , the release said.
Agencies
The agency has claimed that it s probe revealed that these Chinese loan apps offered loans to individuals and levied usurious rate of interest and processing fees.
April 19, 2021
×
The Reserve Bank of India (RBI) has set up a six-member committee to undertake a comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem, and recommend suitable measures for enabling such entities to meet the growing requirements of the financial sector.
The committee, headed by Sudarshan Sen, former Executive Director, RBI, will review existing legal and regulatory framework applicable to ARCs and recommend measures to improve efficacy of ARCs.
It will review the role of ARCs in resolution of stressed assets, including under Insolvency & Bankruptcy Code (IBC), 2016.
To make suggestions
The committee will make suggestions for improving liquidity in and trading of security receipts; and review of business models of the ARCs. It will submit its report within three months from the date of its first meeting.