Payment solutions provider Razorpay, which was recently raided by the Enforcement Directorate (ED), said in a statement that it has cooperated with the agency and its funds have not been frozen.
“This recent visit by the ED is part of the ongoing investigation against certain suspected entities who have conducted illegal business through multiple payment gateways/banks,” the company said in a statement on Friday.
A Razorpay spokesperson said, “We have actively blocked all those suspicious entities and their associated funds about 1.5 years ago and have shared their details several times with the ED.”
“All our operations and onboarding processes adhere to the highest standards of governance and regulatory guidelines. No Razorpay funds have been frozen,” the spokesperson said.
The fintech company said that being a regulated financial institution it regularly cooperates with law enforcement agencies and provides necessary merchant information to aid in the investigation process.
The Enforcement Directorate said in mid-September that it had traced and froze Rs 46.67 crore held in various bank accounts and virtual accounts of RazorPay, and three others – EasyBuzz, Cashfree and Paytm – after conducting raids in connection with the Chinese loan app case. done. ,
The agency then said that the total with Ezbuzz Pvt Ltd, Pune is Rs 33.36 crore, Razorpay Software Pvt Ltd, Bangalore with Rs 8.21 crore, Cashfree Payments India Pvt Ltd, Bangalore with Rs 1.28 crore and Paytm Payments Services Rs 1.11 crore. Got Rs. Ltd., New Delhi.
The ED conducted searches under the Prevention of Money Laundering Act (PMLA), 2002 at six commercial and residential premises in Delhi, Ghaziabad, Mumbai, Lucknow, Gaya and 16 other premises of banks and payment gateway branches and offices in Delhi, Gurgaon. Mumbai, Pune, Chennai, Hyderabad, Jaipur, Jodhpur and Bangalore in connection with investigations related to app-based tokens called HPZ and related entities.
The agency initiated a money laundering investigation on the basis of an FIR registered on October 8, 2021 by the Cyber Crime Police Station, Kohima, Nagaland under various sections of the Indian Penal Code (IPC).
The ED said the HPZ token was an app-based token that promised users significant returns against investments by investing in mining machines for bitcoin and other cryptocurrencies.
The agency then said, “The fraudsters’ method was to entice the first victims to invest in the company on the pretext of doubling their investment through the HPZ Token app.”
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)