The Prevention of Money Laundering Act (PMLA), 2002 is being used to investigate M/s Shinebay Technology India Private Limited (STIPL), Mpurse Services Private Limited (MSPL), and other companies that are owned and controlled by Chinese nationals. On December 21, 2023, the Directorate of Enforcement (ED) conducted search operations at 19 locations in Delhi NCR, Chandigarh, Haryana, Punjab, and Gujarat. A total of Rs. 1.30 crore worth of cash was found and confiscated during the search operations. Furthermore, a number of digital recordings and incriminating documents were also found and taken.
The Enforcement Department (ED) opened an inquiry based on formal complaints (FIRs) filed against a number of businesses and individuals in Bengaluru, Kazipet, and Jangaon under various sections of the Information Technology Act of 2000 and the Indian Penal Code for charging extremely high and exploitative interest rates on loans granted and harassing clients by calling them, threatening, and abusing them, gaining unauthorized access to their personal information, and distributing altered photos of the borrowers and their families to their contacts.
The results of the ED investigation showed that Fintech companies, NBFCs, and Payment Aggregators/Gateways, all of which were owned and controlled by Chinese nationals, were offering online short-term instant loans through mobile apps. They were also charging unconscionable interest rates on loans made to those in need, and they were harassing customers by engaging in dishonest and unethical practices, such as gaining unauthorized access to the borrower’s photo gallery and contact list, charging exorbitant interest rates, charging processing fees, threatening to use systematic abuse, leaking borrower data on purpose, sending phony legal notices, and so on.
These businesses have hired fictitious Directors and Subscribers in India to carry out transactions on behalf of Chinese people and businesses. With the assistance of experts like chartered accountants, attorneys, company secretaries, consultants, and others, Chinese nationals built an intricate network of Fintech Companies and NBFCs in India. Police FIRs from Karnataka (Bengaluru police) and Telangana (Kazipet and Jangaon police) are the source of these money laundering case.
Shinebay Technology India Private Limited (STIPL) and other entities have been implicated in these fraudulent activities. In a prior ED operation on June 14, 2023, incriminating documents, digital devices, bank accounts, and fixed deposits with a total value of Rs. 19.43 crore were seized from six locations. Additional research is currently being conducted.
