Investigation continues against Chinese companies related to online loan distribution – Dainik Savera Times

New Delhi: The Ministry of Corporate Affairs is investigating many Chinese firms, including companies involved in online loan distribution through the app. Some of these investigations have reached the final stage. A senior officer gave this information. Recently, investigation has intensified against companies operating loan distribution apps illegally. Apart from this, the Ministry is taking action against companies and persons concerned for concealing beneficial ownership. A senior official said the ministry is conducting investigations against various Chinese companies, especially those linked to loan apps, and some of these investigations are in the final stages.

He said the ministry responsible for enforcing company laws is looking into whether any fraud has taken place in these companies. Some cases are being investigated by the Serious Fraud Investigation Office (SFIO). According to the official, investigation is also initiated against the concerned companies on the basis of complaints received from other units including the Reserve Bank and the Ministry of Electronics and Information Technology. However, it is sometimes difficult to trace the financing sources of some companies but efforts are made to trace the beneficial ownership of the companies.

2200+ such apps removed from Play Store in 2022-23
In January, the Registrar of Companies of Delhi and Haryana region had imposed a total fine of more than Rs 21 lakh on an Indian company and its related individuals and entities. The move was part of a crackdown on a Chinese conglomerate to hide its lucrative ownership ties. The Finance Ministry informed the budget session of Parliament that Google has suspended or removed more than 2,200 fraudulent loan apps from its Play Store between September, 2022 and August, 2023.