Tag: ED

ED files charges against Thapar, Rana Kapoor in bank loan fraud, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) has named 21 people and entities in its first charge-sheet in an alleged bank loan fraud involving Avantha Group promoter Gautam Thapar.

Besides Thapar, the people named include former chief executive of Yes Bank Rana Kapoor, said people with direct knowledge of the matter.

The agency on Monday informed a local court that it has so far unearthed Rs 514 crore of “proceeds of crime” from Rs 2,435 crore of loans taken by Thapar’s group from a consortium of banks, led by State Bank of India. The ED alleged that the funds were spent on purposes other than the ones the loans were sought for and that substantial funds had been stashed abroad.

Names of some employees and associates of the Avantha Group and Yes Bank, and three companies linked to Thapar also figure in the charge-sheeted.

A trunk full of documents, around 3,000 of them, has been submitted by the agency to the court, the people said.

The agency has elaborated upon the alleged modus operandi, role of bank employees and the evidence collected by it during its investigation so far. Appearing on behalf of Thapar, advocate Vijay Aggarwal urged for an early hearing of the case since Thapar’s bail is slated for hearing on October 7.

The court verbally observed that since the charge-sheet was voluminous and would decide the fate of 21 individuals and entities charged by the agency, it court would peruse all the documents before deciding on taking cognisance of the charge-sheet.

The court has fixed the matter for resumed hearing on October 9.

Last week, ET reported about ED’s claim that the alleged bank loan fraud was mutually beneficial for the Avantha Group and Yes Bank.

In its response opposing the bail application of Thapar, the federal agency told a court that proceeds of crime totalling Rs 131 crore had been routed out to companies based in Mauritius.

To buttress its charge that the fraud benefitted Avantha and Yes Bank, the agency had referred to emails dated August 4, 2017 and August 8, 2017, purportedly sent by Thapar to Rana Kapoor, the then managing director and chief executive of Yes Bank. In one of the emails, the agency had alleged, Thapar wrote to Kapoor “hinting that a PE investor has interest in the (Avantha Group) companies and due diligence is ongoing and they will endeavour to provide a safe exit to Yes Bank from the Avantha Group”.

The agency has claimed that a loan transaction between Yes Bank and Oyster Buildwell — a company it said was controlled by Thapar — was a result of “criminal conspiracy hatched by officials of Avantha Group and Yes Bank”.

The ED had arrested Thapar on August 3 on charges of playing a “key role” in laundering more than Rs 500 crore in a bank loan fraud case.

Thapar had denied the allegations, calling himself a “victim” of fraud allegedly played upon him by officials of Yes Bank.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

ED, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) on Saturday said it has frozen shares worth Rs 700 crore after raids against Karvy Stock Broking Limited (KSBL) CMD C Parthasarathy and others as part of a money laundering investigation against them.

He is currently lodged in the Chanchalguda jail of Hyderabad after being arrested by the Telangana Police last month.

The ED searches were carried out on September 22 at six locations in Hyderabad and on various premises of Karvy group of companies, connected entities and the residential premises of C Parthasarathy, the agency said in a statement.

“Several incriminating evidences in the form of property documents, personal diaries, electronic devices, email dumps, etc have been seized and are being analysed,” it said.

“It is reliably learnt that C Parthasarathy is trying to off-load his shares in the group companies through private deals and thus, in order to preserve the proceeds of crime till further investigation, ED has issued a freezing order on September 24 and the estimated value of these shares has been arrived at Rs 700 crore as per the valuation for the year 2019-20,” it said.

These shares of the Karvy group are being held “directly and indirectly” by CMD Comandur Parthasarathy, his sons Rajat Parthasarathy and Adhiraj Parthasarathy, and their entities.

The ED case, filed under the criminal provisions of the Prevention of Money Laundering Act (PMLA), is based on a Telangana Police FIR alleging KSBL had “illegally pledged the securities of its clients and taken a loan of Rs 329 crore and diverted the same.”

“Another FIR has been registered by central crime station of Hyderabad Police for defrauding IndusInd Bank to the tune of Rs 137 crore and one more FIR has been registered by Cyberabad Police authorities for defrauding ICICI Bank to the tune of Rs 562.5 crore,” it said.

The ED has clubbed all these FIRs as part of its probe and has also recorded the statement of C Parthasarathy in jail.

KSBL under the leadership of C Parthasarathy had committed “gross irregularities” and all the illegally taken loans have become NPA, the agency said.

It is learnt that more FIRs are being registered by other banks and also individual shareholders/ investors, the ED said.

The total loan proceeds taken from multiple banks using the same modus operandi is around Rs 2,873 crore, it said, adding that the NSE and SEBI are also investigating the affairs of KSBL.

The agency said its probe found that KSBL “did not report” the depository participatory or DP account no. 11458979, named KARVY STOCK BROKING LTD (BSE), in the filings made from January-August, 2019 with regulators/exchanges.

“KSBL fraudulently transferred shares belonging to its clients to its own demat account (which is not disclosed to the exchanges) and pledged the shares held in these accounts with the lenders/banks (HDFC bank, ICICI bank, IndusInd bank, Axis Bank, etc.).”

“The securities lying in the aforesaid DP account of KSBL, actually belonged to the clients who were/are the legitimate owners of the pledged securities,” the agency said.

It said KSBL did not have any legal right to create a pledge on these securities and generate funds.

“The quantum of such loans taken by KSBL from illegal pledge of shares is to the tune of Rs 2,873 crore. KSBL credited the funds raised by pledging of client securities to 6 of its own bank accounts (stock broker-own account) instead of the “Stock Broker-Client Account” and further has not reported these 6 own bank accounts (stock broker-own account) held with various private banks to the Sebi,” it alleged.

Prima facie, the ED said, a net amount of Rs 1,096 crore was transferred by KSBL to its group company–Karvy Realty (India) Ltd– between April 1, 2016 to October 19, 2019.

It accused KSBL of conducting “large-scale trading activities in the names of 9 companies that included Karvy Consultants Limited (KCL), which is a group company of Karvy, and 8 other shell companies, in the guise of doing insurance business.”

“Several crore of rupees were diverted for acquiring immovable properties through the group company, KRIL, and to other group companies as well.”

It also came to light that recently deletion of files and emails from the computer servers by using anti-forensic tools had been done, under the instructions of C Parthasarathy,” it claimed.

The bank statement analysis of these companies revealed that there is “large value rotation of funds” between the Karvy group companies and the bank accounts of certain shell companies.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

ED seizes HDIL shares worth ₹233 crore

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) seized partly paid compulsorily convertible preference shares of HDIL group companies worth ₹233 crore in relation to the PMC Bank scam.

The PMC Bank scam came to light in September 2019. At least a dozen entities have been charge-sheeted so far for causing wrongful loss to the tune of ₹6,117.93 crore to PMC Bank, and a corresponding gain to themselves. HDIL Group’s promoters were considered to be the lead conspirators of the scam along with the bank’s then MD, Joy Thomas.

Also see: Enforcing contracts key to ‘ease of business’

Investigation under Prevention of Money Laundering Act 2002 (PMLA) revealed that in spite of default in payment, HDIL group companies availed loans from PMC from time to time. Now, the ED has attached partly paid Compulsorily Convertible Preference shares of HDIL group companies totalling to ₹233 crore under the provisions of Prevention of Money Laundering Act 2002 in PMC bank scam.

“On the strength of these shares, HDIL have right for allotment of under construction flats admeasuring 90,250 Square feet FSI in Ghatkopar, Mumbai of the developer M/s Aryaman Developers P Ltd. The developer has given an undertaking to ensure not to sell/transfer/alienate or create any third party rights thereon on completion of the project,” it said in a statement on Thursday.

The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC Bank officials with the promoters of HDIL. There was misconduct on the part of PMC officials as they ignored all prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility. Instead of declaring them as NPA for initiating actions for recovery, the PMC bank officials choose to accommodate the HDIL group.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Enforcement Directorate attaches HDIL group’s shares worth Rs 233 crore, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) on Thursday said it has attached partly-paid compulsorily convertible preference shares worth Rs 233 crore of HDIL group companies in the alleged multi-crore-rupee PMC bank fraud and money-laundering case. It said “on the strength” of these shares, HDIL had the rights for allotment of under-construction flats measuring 90,250 square feet FSI (floor space index) in Mumbai’s Ghatkopar of developer Aryaman Developers Private Limited.

“The developer has given an undertaking to ensure not to sell, transfer, alienate or create any third-party rights on completion of the project,” the ED said.

The agency has filed a money-laundering case to probe the alleged loan fraud in the Punjab and Maharashtra Co-operative (PMC) Bank in October, 2019 against the Housing Development Infrastructure Limited (HDIL), its promoters Rakesh Kumar Wadhawan, his son Sarang Wadhawan, its former chairman Waryam Singh and former managing director Joy Thomas.

The others under the agency’s scanner include the promoters and executives of Somerset Construction Private Limited, Serveall Construction Private Limited, Sapphire Land Development Private Limited, Emerald Realtors Private Limited, Awas Developers and Construction Private Limited, Prithvi Realtors and Hotels Private Limited and Satyam Realtors Private Limited.

The father-son duo were arrested by the ED in the case in October, 2019 and they are lodged in a Mumbai jail at present.

“Rakesh Wadhawan and other promoters of HDIL have fraudulently utilised the funds taken from the PMC Bank in various projects by projecting the same as untainted.

“During 2011-12, an amount of Rs 233 crore was transferred from HDIL group companies to the group companies of Mukesh Doshi of Mumbai and these funds were finally utilised by Aryaman Developers Private Limited in the slum rehabilitation project being developed in Ghatkopar East, Mumbai,” the ED said in a statement.

According to the understanding between Rakesh Wadhawan and Doshi, HDIL group companies would be allotted constructed area of FSI measuring 90,250 sq. ft of the carpet area in the proposed building.

“For this project, Aryaman Developers had its own investments, including loans from banks. The funds were utilised for the payment of land premium, rent to slum dwellers, construction of transit camps, fungible premium, construction of rehab and IOD (intimation of disapproval) deposit with the slum rehabilitation authority.

“The promoters of HDIL intended to take a backdoor exit from the project and approached Aryaman Developers for a settlement at Rs 150 crore for not causing hindrance in the ongoing project for slum rehabilitation,” the ED alleged.

It claimed that an “undertaking” was taken from Doshi in the form of an affidavit to ensure that the project after development would not fall in the hands of accused Rakesh Wadhawan.

Describing the role of HDIL in the alleged default with the PMC Bank, the ED said its group companies availed loans from the bank from time to time.

“The mode and manner of operation of bank accounts of HDIL clearly indicate the connivance of PMC bank officials with the promoters of HDIL.

“There was misconduct on the part of PMC officials as they ignored all the prevailing procedures to facilitate promoters of HDIL by extending unusual credit facility,” it alleged.

Instead of declaring those as non-performing assets (NPAs) for initiating actions for recovery, PMC bank officials chose to “accommodate” the HDIL group, the agency alleged.

“Due to such a criminal act of the promoters of HDIL group companies, the PMC Bank suffered a huge wrongful loss to the tune of Rs 6,117.93 crore,” it said.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Enforcement Directorate arrests MD of company in Hyderabad, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) on Thursday said it arrested the MD of a Hyderabad-based company last week in a money laundering case linked to an alleged fraud of Rs 3,316 crore at a consortium of public sector banks. Vuppalapati Satish Kumar, the managing director of Prithvi Information Solutions Limited (PISL), was arrested on August 12 and a special Prevention of Money Laundering Act (PMLA) Court later sent him to ten days custody of the agency.

This is the second arrest in this case after his sister V Hima Bindu, the “prime accused” and managing director of a city-based telecom equipment manufacturing company VMCSL, was taken in custody by the ED earlier this month.

“Although V Satish Kumar claimed that he had no link with the non-performing asset (NPA) of VMCSL, more than 40 hard disks of this company were recovered from his residence during the search carried out on July 20.”

“On forensic examination of the digital devices, it was found that he (Satish Kumar) indulged in benami transactions and was involved in efforts to transfer fraud amounts to off-shore entities,” the ED alleged in a statement issued here.

He was, it claimed, non-cooperative during the investigation and was not supplying documents of his own business entities on one pretext or the other.

The ED case of money laundering against VMCSL and its promoters is based on a CBI FIR earlier filed against them.

“VMCSL had taken loans from a consortium of banks and the present dues outstanding to all the banks is Rs 3,316 crore.”

“Forensic audit revealed that VMCSL circulated loans to various related entities to inflate its books of accounts,” the ED had alleged earlier.

It said the audit also revealed that its related entity PISL was given 3 per cent commission by VMCSL for all receipts from BSNL “without any specific role” of PISL in BSNL tenders.

“Forensic audit found VMCSL had opened various Letters of Credit worth Rs 692 crore in the name of fake or dummy entities which were subsequently devolved,” it alleged.

Bindu, the ED had claimed, through her company VMCSL and with the “active assistance” of her brother V Satish Kumar, in order to dodge the banks, created false and exaggerated operational revenues by generating fake sales and purchase invoices through the companies controlled by their directors and family members.”



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

ED arrests Gautam Thapar of Avantha Group, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) arrested the Avantha Group of companies promoter Gautam Thapar on charges of playing a key role in laundering more than Rs 500 crore in a Yes Bank loan fraud case.

Thapar, 60, was remanded in one-day custodial interrogation of the ED by a local court on Wednesday, after being arrested the previous night following raids by the agency against his businesses in Delhi and Mumbai.

In its remand paper, the agency alleged that “illegal favours are found to have been extended by Yes Bank to Avantha Group”. “Any quid pro quo for extending such illegal benefit is yet to be ascertained,” said the document, a copy of which was seen by ET.

The court sought the complete case file and the enforcement case information report, equivalent to a first information report (FIR), registered by the agency against Thapar and others in June. The agency had sought 14 days of remand.

The ED had filed a case under the Prevention of Money Laundering Act on the basis of an FIR filed by the Central Bureau of Investigation (CBI) which accused Thapar and others of defrauding Yes Bank.
The remand paper said that the ED probe had revealed money laundering through Oyster Buildwell Pvt Ltd (OBPL), Jhabua Power Limited (JPL), Jhabua Power Investment Ltd (JPIL), Avantha Power & Infrastructure Ltd (APIL), Avantha Realty Ltd and other entities “controlled and beneficially owned directly or indirectly” by Thapar.

It said that “sham agreements were made by these entities to fraudulently obtain huge amount running into more than Rs 500 crore from Yes Bank and further by different modes of layering the tainted amount was laundered and the loan account thus turned NPAs causing a loss of huge public money”.

Thapar’s counsel, Vijay Aggarwal, however said that his client was the “victim” in this case and that the said sham agreements were executed by Yes Bank executives to secure “valuable shares” of Thapar’s companies. He claimed that Thapar had also complained against the Yes Bank executives but no investigative agency had taken cognisance of the matter.

Aggarwal produced an email purportedly sent by a Yes Bank executive to show that the so-called sham agreements were “forced upon” Thapar’s group of companies. He further claimed that the entire transaction had taken place because Yes Bank wanted to ensure “evergreening of loans”.

The ED informed the court that Thapar’s statements were recorded twice in July and once on Tuesday, and that he allegedly “misled” the investigators.

“JPL entered into a sham operations and management agreement for its thermal power project with its group company namely JPIL for a monthly consideration of Rs 7.5 crore and JPIL entered into a further sham sub-contract for the same work with OBPL for a monthly consideration of Rs 15 crore,” alleged the remand paper.

It said that “to give a plausible justification and explanation for seeking of loan, a special clause related to provision of an interest free security deposit to be kept by OBPL to JPIL to the tune of Rs 514.27 crore was added in the non-genuine agreement executed between JPIL and OBPL which was sought as loan from Yes Bank”.

The agency alleged that OBPL is a paper company with no business activity. “The company had no employees working in it and has just held landholdings in its name,” said the remand paper.

The ED claimed that two directors of OBPL have “confirmed” to the agency that OBPL is a paper company. “And that OBPL had no prior experience of handling O&M work of thermal power plant. Neither was any service given by OBPL to JPIL with regard to the O&M agreement nor was any consideration paid by JPIL to OBPL,” said the remand paper.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

ED arrests Gautam Thapar of Avantha Group, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Enforcement Directorate (ED) on Tuesday late evening arrested Gautam Thapar, promoter Avantha Group of Companies under the Prevention of Money Laundering Act (PMLA).

He will be produced before a local Court on Wednesday where ED will seek his custodial interrogation. As per available information, ED had raided premises of Gautam Thapar on Tuesday.

The federal agency had launched a money laundering probe on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against Gautam Thapar and others for allegedly defrauding Yes Bank.

The CBI had booked Thapar and others including their Directors/Promoters and unknown persons of private companies/bank officials for causing an alleged loss of Rs. 466.51 crore (approx) to Yes Bank.

Those booked by the CBI included M/s Oyster Buildwell Pvt. Limited, Gurugram and its holding company M/s Avantha Realty Ltd., its Directos/promoters viz. Raghubir Kumar Sharma, Rajendra Kumar Mangal, Tapsi Mahajan, Gautam Thapar and unknown officials of private companies/bank.

It was alleged that Avantha Realty had availed a term loan facility of Rs. 515 crore (approx) from Yes Bank Limited in December, 2017. The loan amount was declared as NPA on October 30, 2019.

Further, the borrower was allegedly declared ‘Red Flagged Account’ on March 6, 2020 on the basis of Early Warning Signals (EWS). It was also alleged that the accused including said private company & its Holding Company, its Directors/promoters and others committed breach of trust, cheating, criminal conspiracy, forgery for diversion/misappropriation of the public money during the period from 2017 to 2019, thereby causing loss to the tune of Rs. 466.51 crore (approx) to Yes Bank, as per CBI’s FIR.

It might be mentioned here that last year the CBI had registered an FIR against Gautam Thapar and Avantha Group. The said FIR, registered in March last year, alleged criminal conspiracy, cheating, and obtaining illegal gratification against Rana Kapoor, former Managing Director of YES Bank and his kin.

“It was alleged that Rana Kapoor conspired with the others named in the FIR to obtain illegal gratification in the form of a bunglow at Amrita Shergill Marg, New Delhi, by paying only Rs 378 crore (approximately) through Bliss Abode Private Limited, where Rana’s wife was one of the two directors,” said the CBI FIR registered last year.

“This property was immediately thereafter mortgaged to India Bulls Housing Finance Limited for a loan of ?685 crore (approximately). It was further alleged that much less consideration than the market value was paid to Avantha Realty Ltd for relaxation in other existing loans of Avantha Group of companies and for advancing new/additional loans to Avantha Group of companies,” the FIR added.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,

UK Court declares Vijay Mallya bankrupt, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Accept the updated privacy & cookie policy

Dear user,

ET BFSI privacy and cookie policy has been updated to align with the new data regulations in European Union. Please review and accept these changes below to continue using the website.

You can see our privacy policy & our cookie policy. We use cookies to ensure the best experience for you on our website.

If you choose to ignore this message, we’ll assume that you are happy to receive all cookies on ET BFSI.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

SBI-led consortium raises Rs 792 crore by sale of Vijay Mallya’s UB shares, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


A consortium of banks led by the State Bank of India on Friday realized Rs. 792.11 crore by sale of shares in the bank loan fraud case involving Kingfisher Airlines and its former owner and fugitive economic offender Vijay Mallya.

These shares were handed over by the Enforcement Directorate (ED) to the consortium of banks.

Earlier SBI led consortium had realized Rs. 7181.50 crore by liquidating assets handed over to SBI led consortium by ED, the agency said in a press statement on Friday.

In addition, Rs. 1060 crore worth asset has been allowed to the banks by Fugitive Economic Offense Court in PNB/ Nirav Modi Case & Rs. 329.67 Crore has been confiscated by ED under provisions of Fugitive Economic Offenders Act, the agency added.

On July 1 Purvi Modi (sister of Nirav Modi) transferred Rs. 17.25 crore from proceeds of Crime from her foreign bank account to ED.

Few days back, ED has further handed over assets worth Rs. 3728.64 Crore to the SBI led consortium including shares of Rs. 3644.74 Crore, Demand Draft of Rs. 54.33 Crore and immovable properties worth Rs. 29.57 Crore.

The statement issued by the agency further added that Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded Public Sector Banks by siphoning off the funds through their companies which resulted in total loss of Rs.22,585.83 Crore to the banks.

Till date ED has transferred assets worth Rs. 12,762.25 Crore to the Public Sector Banks and confiscated assets of Rs. 329.67 Crore. ED had also recovered Rs. 17.25 Crore from Purvi Modi. As on date, assets worth 58% of total loss to the banks have been handed over to Banks/confiscated to government of India.

The agency claimed that till date it has attached/seized assets of Rs. 18,217.27 Crore under the provision of Prevention of Money Laundering Act (PMLA).



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

ED issues show cause notice to WazirX, directors under FEMA

Banking & Finance

[ad_1]

Read More/Less


In a move that further raises concerns over the functioning of crypto-currency exchanges, the Enforcement Directorate has issued a show-cause notice to one of the largest domestic crypto-exchange, WazirX, and its Directors Nischal Shetty and Sameer Hanuman Mhatre for alleged violation of the Foreign Exchange Management Act on transactions involving crypto-currencies worth ₹2,790 crore.

WazirX was bought out by Chinese crypto-currency firm Binance in 2019.

WazirX launches NFT marketplace for Indian artists

In a statement on Friday, the ED said it has initiated a probe on the basis of its ongoing money-laundering investigation into Chinese-owned illegal betting applications. In September, the agency had searched 15 locations in Delhi, Gurugram, Mumbai and Pune and busted a worth ₹1,268-crore online betting racket involving Chinese companies. In December, the ED said a large amount of money was inexplicably transferred using crypto-currency.

On Friday, the ED said the investigations had revealed some Chinese nationals had laundered proceeds of crime amounting to about ₹57 crore, by converting Indian rupee deposits into crypto-currency Tether and then transferring it to Binance (the exchange is registered in Cayman Islands) Wallets on instructions from abroad.

Range of transactions

“WazirX allows wide range of transactions with crypto-currencies, including exchange into Indian rupees and vice-versa; exchange of crypto-currencies; and even transfer/receipt of crypto-currency held in its pool accounts to wallets of other exchanges which could be held by foreigners in foreign locations,” the ED said.

Crypto exchanges bet big on India

WazirX does not collect documents, in clear violation of the mandatory Anti-Money Laundering (AML) and Combating of Financing of Terrorism (CFT) norms and FEMA guidelines, it said.

In the period under investigation, users of WazirX have, through its pool account, received crypto-currency worth ₹880 crore from Binance accounts and moved out crypto-currency worth ₹1,400 crore to Binance accounts.

No audit trail

The main concern for the investigative agency is that none of these transactions is available on blockchain for any audit/investigation. Also, It was found that WazirX customers could transfer ‘valuable’ crypto-currencies to any person irrespective of his/her location and nationality without any documentation, making it a safe haven for those looking to launder money or for other illegitimate activities.

Nischal Shetty, CEO and Founder, WazirX, however, said the company is yet to receive any show-cause notice from the ED.

“WazirX is in compliance with all applicable laws. We go beyond our legal obligations by following Know Your Customer (KYC) and AML processes and have always provided information to law enforcement authorities. We are able to trace all users on our platform with official identity information. Should we receive a formal communication or notice from the ED, we will fully cooperate in the investigation,” he said in a statement. The cryptocurrency exchange also tried to ease investor concerns. “Your funds are absolutely safe,” it said in a tweet. While last week, the RBI said it has major concerns around crypto-currencies, most crypto exchanges in the country say the concerns are unfounded as all transactions are based on proper AML and KYC processes.

 

 

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,