ED attaches Rs 6.17 crore from fintech firms linked to Chinese nationals

According to the agency, its inquiry revealed that the accused persons had set up fintech firms for carrying out illegal transactions, issuing loans and raising investments through mobile apps such as Cash Master, Krazy Rupee, Cashin and Rupee Menu. These companies were incorporated during the Covid pandemic at common addresses on the instructions of the Chinese nationals and with the help of Indian chartered accountants, who used know-your-customer documents obtained from Indian nationals for the purpose. The Indian nationals were made directors or shareholders in the companies. The companies’ bank accounts were being operated or controlled mainly by the Chinese nationals, according to the agency.

The accounts opened on the basis of the Indian nationals’ KYC documents were allegedly utilised to provide short-term loans to the public. High processing fees and usurious interest rates were allegedly charged and unethical ways adopted to recover the high interest rates.

The fintech companies utilised their own funds received from abroad (from China) for giving loans to unemployed youths and other vulnerable sections of society. It was also revealed that companies had layered and remitted the funds abroad, according to the agency.