Loan Apps: Rs 76.67 crore worth property seized by ED

The Enforcement Directorate investigated the matter based on a case filed at the CID and confiscated Rs 76.67 crores worth of property from lenders.

Bengaluru:The Enforcement Directorate (ED) has confiscated the assets of 7 online debt companies in connection with a public fraud case through Chinese lending App.

The ED, which was investigating the case based on a case filed at the CID, has confiscated Rs 76.67 crores worth of property.

Of the seven companies, three are fintech (Financial technology) companies. They are Mad Elephant Network Technology Private Limited, Baryonyx Technologies Private Limited, Cloud Atlas Future Technology Pvt Limited. These are controlled by the citizens of China.

X10 Financial Services Limited, Track Fined Private Limited, Jamnadas Morarjee Finance Private Limited are registered as non-bank finance companies.

Recovery agents of these companies were harassing those who had taken loans using the App and did not repay the loan. Victims of the fraud were being charged in the name of service charge, interest, and compound interest. The companies were extorting borrowers, The Enforcement Directorate officials, who had registered the case, found out.

The company used to harass its customers by making the lender's mobile number, photos go viral on social networking sites. The business was being conducted in India in violation of the RBI rules. The Enforcement Directorate has filed a complaint against the instant loan app.

In Tamilnadu, a young man committed suicide due to the harassment of the company. The Directorate of Enforcement has identified the 7 Chinese companies and has also taken action against their local partner companies. ED officials have closed offices, seizing money and property of the companies.

Telangana police and cyber units have lodged a complaint against China-based individuals and operators under illegal money laundering law.

"Legal action will be taken against the lenders. The 27 FIRs have already been filed by the Hyderabad Police, more information is being collected by them," an ED official said.