Various gateways functioning under Paytm under scanner after allegations of unscrupulous loans being provided.

One97 communications which is a Digital financial services firm operating under the Paytm brand, has denied any connection with merchants which are being scrutinised by the Enforcement Directorate in the Chinese loan app case. Paytm stated in one of its regulatory filing that “As a part of ongoing investigations on a specific set of merchants, the ED has sought information regarding such merchants to whom we provide payment processing solutions. We wish to clarify that these merchants are independent entities, and none of them are our group entities,”. The ED has conducted raids in various premises of Razorpay, Paytm and Cashfree in Bangaluru over allegations of laundering and irregularities in instant app-based loans which are being controlled by Chinese persons.

The probe started after a number a number of debtors who were duped and then committed suicide and hence investigation is being conducted under Criminal section of the PMLA. The companies are also under scanner for sourcing personal date of the loan-taker at the time of downloading the apps on their phones, even when the interest rates were gradually increasing to a very high rate.