The Enforcement Directorate (ED) is seeking details of the know-your-customer (KYC) holders of Lips and Bounces, a financial technology (fintech) company that allegedly duped investors of crores of rupees.
The ED raided the company's offices in Mumbai and Pune on August 15, 2023. During the raid, the ED seized several documents, including KYC records of investors.
The ED is now trying to identify the KYC holders and their financial transactions. The agency suspects that the company may have used these funds for illegal activities.
The ED has also asked the banks to provide details of all the transactions made by Lips and Bounces since 2012. The agency is also probing the company's links with other fintech companies.
The ED's action comes after several investors filed complaints against Lips and Bounces alleging that the company had duped them of their money. The investors claimed that the company had promised them high returns on their investments, but failed to deliver.
The ED is investigating the case under the Prevention of Money Laundering Act (PMLA).
The case against Lips and Bounces is the latest in a series of cases involving fintech companies. In recent years, there have been several cases of fintech companies duping investors of their money.
The ED is stepping up its efforts to crack down on such cases. The agency is also working with other financial regulators to strengthen the regulatory framework for fintech companies.
The ED's action against Lips and Bounces is a warning to other fintech companies that they will not be tolerated if they indulge in illegal activities.
