Paytm And PayU Face New ED Raids Linked To Chinese Deals. All You Need To Know
Updated on 15 Sep, 2022: The Enforcement Department has conducted fresh raids at several locations belonging to payment gateways Paytm and PayU in connection with shell company transactions in China.
After the investigation, the agency asked her Paytm to freeze certain amounts from some merchant identifiers (MIDs), the report said.
The raids took place in Mumbai, Delhi, Gurugram, Lucknow and Kolkata. Federal agencies began raids on the companies’ premises on Sept. 2, but a new raid was conducted Wednesday in connection with an “illegal” Chinese lending app.
The Enforcement Department has conducted fresh raids at several locations belonging to payment gateways Paytm and PayU in connection with shell company transactions in China.
After the investigation, the agency asked her Paytm to freeze certain amounts from some merchant identifiers (MIDs), the report said.
The raids took place in Mumbai, Delhi, Gurugram, Lucknow and Kolkata. Federal agencies began raids on the companies’ premises on Sept. 2, but a new raid was conducted Wednesday in connection with an “illegal” Chinese lending app.
On September 3, a raid was conducted at the premises of online payment gateways including Razorpay Pvt Ltd, Cashfree Payments and Paytm Payment Services Ltd.
Investigative bodies then seized funds worth 17 million rupees held in “trader ID cards and bank accounts of these Chinese-controlled companies,” an official statement said.
The ED has not issued a statement regarding the new raid. A Paytm spokesperson said that as part of an ongoing investigation into certain merchant groups, ED obtained information about such merchants that offer payment processing solutions.
“As previously mentioned, ED continues to solicit information about specific merchants from various payment processors, and we are sharing the required information.”
“These dealers are independent companies and are not part of our group. A Paytm spokesperson said they are cooperating fully with the authorities and all policy measures are being properly complied with.
ED has ordered her Paytm to freeze certain amounts from merchant IDs of certain merchant corporate groups (as ED noted in its press release).
“Funds ordered to be frozen do not belong to Paytm or our group companies. As noted above, ED continues to solicit information about specific merchants from various payment processors and is sharing the required information,” a Paytm spokesperson said.
The lawsuit is based on 18 FIRs registered by the Bengaluru City Cyber Crime Police Department and a number of those involved in the extortion and harassment of the public who made small loans through his mobile app operated by these agencies.
“Investigations have revealed that these facilities are operated by Chinese nationals. And they’re making criminal proceeds,” ED said.
ED said it was aware that both companies were using different merchant IDs/accounts to conduct suspicious transactions with payment gateways/banks.
Facilities of Razorpay Pvt Ltd, Cashfree Payments, Paytm Payment Services Ltd, and Chinese controlled/operated companies were targeted in the raids.
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