ED has filed prosecution complaint against 7 entities and 5 individuals involved in the Chinese Loan App case before the Special PMLA Court, Bengaluru. The Hon’ble Court has taken cognizance

Directorate of Enforcement (ED) has filed prosecution complaint against 7 entities
and 5 individuals involved in the Chinese Loan App case before the Special PMLA Court,
Bengaluru. The hon’ble Court has taken cognizance of the Complaint. The accused
entities include three 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, three NBFCs registered with
RBI namely X10 Financial Services Private Limited, Track Fin-ed Private Limited and
Jamnadas Morarjee Finance Private Limited and one Payment gateway, Razorpay
Software Private Limited. Earlier ED has issued two provisional attachment orders and
attached Rs.77.25 Crore in this case lying in the bank accounts and payment gateways
and the same has been confirmed.
ED had initiated investigation based on the 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.
Investigation conducted by ED revealed that the Fintech companies have
agreement with respective NBFCs for disbursement of loans through digital lending apps.
During investigation, it was revealed that the money lending business is being illegally run
by these Fintech companies actually and these NBFCs knowingly let these fintech
companies to use their names for the sake of getting commission without being careful
about the conduct of these fintech companies. The same is also violation of the Fair
Practices Code of RBI.
Further investigation is under progress.