Paytm denies links with Chinese loan traders after ED raids firms including Razorpay, Cashfree

Paytm Denies Links With Chinese Loan Merchants After ED Raids on Firms Including Razorpay, CashFree

Paytm’s parent unit One97 Communications on Sunday denied any links with merchants who are currently under the Enforcement Directorate’s (ED) investigation in connection with a Chinese loan app. The fintech company said in a statement that none of the funds deposited by the central agency belong to it or any of its group firms. The ED conducted searches at the premises of online payment entities including Paytm, Razorpay and Cashfree late last week.

“As a part of the ongoing investigation on a specific group of merchants, the ED has sought information on merchants to whom we provide payment processing solutions. We would like to clarify that these merchants are independent entities, and they None of us is a group organization” Paytm said regulatory filing on Sunday.

The digital payments firm said that none of the merchant IDs directed to be frozen by the ED are related to Paytm or any of its group entities.

“We are and will continue to be fully cooperating with the authorities, and all instructional actions are being duly followed,” it added.

The ED on Saturday said it had raided six premises of online payment gateways including Paytm, Razorpay and Cashfree in Bengaluru as part of its probe into Chinese-controlled firms and persons suspected of illegal lending practices.

According to a PTI report, the ED had seized Rs. Funds worth Rs 17 crore held in certain merchant IDs and bank accounts of Chinese nationals. The raid was conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Paytm’s parent One97 Communications is backed by China’s Alibaba Group Holding and its subsidiary Ant Group.


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