Targeting two businesses purportedly associated with Chinese nationals embroiled in a Money Laundering scandal stemming from lending practices via mobile applications, the Enforcement Directorate (ED) launched a fresh round of investigations.

Details on in a money laundering investigation, the ED reveals new searches on fintech companies supported by China

The raids, which took place on December 21 at 19 different locations in Delhi-NCR, Chandigarh, Haryana, Punjab, and Gujarat, were allegedly “owned and controlled” by Chinese entities and targeted companies such as Shinebay Technology India Private Limited (STIPL) and Mpurse Services Private Limited (MSPL), according to an official statement from the ED.

The inquiry also revealed the use of “dummy” directors and local subscribers to do business in India on behalf of Chinese companies.

The ED claims that Chinese nationals painstakingly built a network of non-banking and fintech companies in India, using local experts including consultants, company secretaries, lawyers, and chartered accountants to help with operations.

Police First Information Reports (FIRs) submitted in Telangana (Kazipet and Jangaon police) and Karnataka (Bengaluru police) are the source of this money laundering case.

In addition to digital records and incriminating documents, the ED confiscated about Rs 1.30 crore in cash during the most recent searches. This comes after the agency’s earlier actions in June, when they searched several places and took fixed assets and bank deposits worth Rs 19.43 crore.

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