ED cracks down on six instant loan apps in Bengaluru seizing Rs 17 crore

Main Image
  • Like
  • Comment
  • Share

In a mega crackdown by the Enforcement Directorate, six premises of instant loan apps in Bengaluru including Cashfree Payments, Paytm Payments Services Ltd, and Razorpay Pvt Ltd were raided after more than 18 FIRs were filed at the Cyber Crime Police Station in the city citing money laundering cases. The police have nabbed persons involved in these entities that apparently used dummy accounts of Chinese disguised as Indians to provide small amounts as loans to the loan availers and generate huge proceeds of the crime.

ED cracks down on instant loan apps in Bengaluru

After the FIRs were filed, the ED swung into action against multiple entities and persons who were reported to be involved in extortion and harassment of users who took small amounts as loans. Apparently, the ED found out that these entities were controlled by Chinese nationals who faked their documents and used dummy directors to further con the act.

The ED raided six premises spread in Bengaluru that were running illegal businesses by using several merchant IDs from banks and payment gateways. Some of the offices that were raided are Cashfree Payments, Razorpay Pvt Ltd, Paytm Payment Services Ltd, and others headed by Chinese nationals. Moreover, the information fed to the Ministry of Current Affairs (MCA) was fake as well.

According to the modus operandi, these entities used several merchant IDs linked to banks in order to swindle huge amounts that they would release as loans to the loan availers. The proceeds of the business would then go towards these Chinese nationals. In fact, the ED seized Rs 17 crore from these merchant Ids and bank accounts which have been frozen as well.

A similar modus operandi was spotted with Xiaomi which allegedly involved itself in extortion thereby using fake Indian directors as a cover for their Chinese directors who eventually left the country and were caught. ZTE was involved in similar tricks where it agreed that the books were cooked to show losses, however, the smartphone maker reportedly got profits of 30% on the important products.

The ED has been following such instances for a few years now. It was only recently that the Delhi Police closed 100 such loan apps that were leaked to Chinese nationals and 22 people were arrested and involved in the extortion business.

Related Articles

ImageApple Gave Me the iOS 26 Updates I Needed: Photos App Fixed, Camera Redesigned

At WWDC 2025, Apple did something it rarely does: it backtracked. In a moment of quiet humility during the iOS 26 segment, Craig Federighi acknowledged — in his own Apple-ish way — that the redesign of the Photos app in iOS 18 didn’t go as planned. “Many of you missed using tabs in the Photos …

ImageXiaomi’s Allegations of Coercion Baseless, Enforcement Directorate Says

After an allegation filed by Xiaomi dated May 4th, the Enforcement Directorate (ED) has officially made a statement that the allegations are “baseless” and that the agency tried to record statements of Xiaomi India’s top executives under coercion. ED says that the allegations made by Xiaomi India are ‘baseless’ According to the latest update, the …

ImageXiaomi India shuts down Financial Services like Mi Pay and Mi Credit

If you have been trying to find Mi Pay or Mi Credit apps on Google Play Store or Xiaomi’s app store and yet to no avail, don’t worry because it’s not you. Apparently, Xiaomi has removed both Mi Pay and Mi Credit apps as well as ceased the related operations to focus on its core …

ImageFraudsters Impersonating Investment Firm Duped Kerala Man of Rs. 4.05 Crore

TL;DR In a fresh cyber scam, a Kerela man has lost over Rs. 4 crore to a fake app that promised some sort of investment opportunities. A woman impersonating a representative of the investment firm approached the 45-year-old man through the popular online messaging platform WhatsApp. Also Read: E-Challan Scams: What You Need to Know …

ImageOppo K13 5G Launched in India with a starting price of Rs. 17,999

Tech giant Oppo has launched its next mid-ranger in India by debuting the Oppo K13 5G that sports a premium design, a Snapdragon chipset, and a massive 7000mAh battery. The company has priced K13 at Rs. 17,999 for the base model and also announced launch offers for those who wish to purchase the device. ALSO …

Discuss

Be the first to leave a comment.