Update (Sept 15, 20200): Sources told news agency IANS that ED is conducting fresh raids in Mumbai, Delhi, Gurugram, Lucknow and Kolkata at the premises of payment gateaways Paytm and PayU, in connection with the Chinese loan apps case. This story was first published on September 5, 20200. The premises of Razorpay, Cashfree, Paytm and entities controlled/operated by Chinese persons were raided by the Enforcement Directorate (ED) on September 2, 2022 in Bengaluru. In the search operations carried out by the investigation agency, Rs 17 Cr were seized in Merchant IDs and bank accounts of certain “Chinese persons-controlled entities.” Why it matters: Several FIRs about being harassed by Chinese loan-taking apps have been lodged in different parts of the country. Congress spokesperson Gaurav Vallabh had earlier said that according to an investigation, over 52 individuals have died by suicide “due to blackmailing by these apps” and “Chinese loan app companies have siphoned off Rs 500 crore from India through the hawala route.” What is the Chinese loan app case? In a series of incidents reported all over the country, several loan-apps have been accused of harassing their customers. These apps disburse loans of small amounts very easily, but often at “exorbitant interests.” This Medianama report states how one such app charged Rs 2,300 for a loan of Rs Rs 3,700. The common thing between several such apps is its connection with China. The money collected via the app is siphoned off to China via payment gateways or crypto. People took…
