The Big AML Watchdog of India ED has enquired in the Coda Payments India Private Limited. At the time of investigation it was observed that it was all related to illegal money laundering activities.
WHAT IS PREVENTION OF MONEY LAUNDERING ACT?
An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. Whosoever directly or indirectly attempts to indulge or knowingly assist or knowingly is a part or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.
What is Money Laundering?
Money Laundering is regarded as the process of converting black money to white money. It involves corruption, drug trafficking, embezzlement etc. It regarded as the crime under number of jurisdictions. Money Laundering is regarded as an important crime as a whole.
There are mainly 3 stages involved in money laundering they are:
- Placement
- Layering
- Integration
ABOUT Coda Payments CASE
ED initiated search operation in 3 premises pertaining to M/s Coda Payments India Pvt Ltd under Prevention of Money Laundering Act. Investigation was against M/s Coda Payments India Pvt Ltd and Garena Free Fire mobile game, on the basis of multiple FIRs registered.
It was alleged that M/s Coda Payment India Pvt Ltd which facilitates and collects payment from end users of games like Garena Free Fire, Teen Patti Gold, Call of Duty etc., in the name of monetizing and generating revenue for game, is resorting to unauthorized deduction from the end users of these games in the name of selling digital token to end users which are used by the end users to enhance their playing experience in the game. The above mentioned following games are regarded as mostly illegal.
Further it was alleged that the game developers have intentionally designed the payment mechanism is such a way that the after first transaction subsequent payments can be made without authentication. Children unaware of these technical terms, click on pop-up notification and end-up giving authorization to make payment.
FINDINGS of Coda Payments Case
It was found that Coda Payments India Pvt Ltd was incorporated only to act as an adent of Coda Payments Singapore Pte Ltd foe collecting money from users and remitting the same to parent company in Singapore. Till date Coda Payments India Pvt Ltd has collected Rs.2850 Crore from users out of which Rs.2265 Crore has been remitted outside India after retaining certain percentage of revenue for payment of taxes and nominal profits.
To prevent company from not sharing further proceeds of crime which it has collected from users, all bank accounts, merchant Ida in payment gateways and Fixed Deposits of Coda Payments India Pvt Ltd with balance of Rs. 68.53 crore has been freeze.
Further investigation is going on.
