The federal probe company mentioned in an announcement that the particular Prevention of Money Laundering Act (PMLA) courtroom based mostly in Bengaluru has taken cognisance of the prosecution grievance (chargesheet).
A complete of seven entities and 5 people have been named as accused within the cost sheet.
The accused entities embody fintech corporations Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited that are “controlled” by the Chinese nationals and three non-banking monetary corporations (NBFCs) registered with RBI named X10 Financial Services Private Limited, Track Fin-ed Private Limited and Jamnadas Morarjee Finance Private Limited.
Payment gateway Razorpay Software Private Limited has additionally been named within the cost sheet as an accused, the company mentioned.
The cash laundering case of the ED stems from a number of FIRs of the Bengaluru Police CID which had been filed based mostly on complaints acquired from numerous prospects who had availed loans and “faced harassment” from the restoration agent of those money-lending corporations.
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According to the ED, the probe discovered that fintech corporations had “agreement with respective NBFCs for disbursement of loans through digital lending apps”. “The money-lending business was being illegally run by these fintech companies actually and these NBFCs knowingly let these firms use their names for the sake of getting commission without being careful about their conduct. The same is also a violation of the fair practices code of the Reserve Bank of India,” the company mentioned.
The company earlier had issued two provisional attachment orders to freeze Rs 77.25 crore price funds saved in financial institution accounts and fee gateways which was later confirmed by the Adjudicating Authority of the PMLA.
Source: economictimes.indiatimes.com