The search took place on September 27 at Coda Payments India Pvt Ltd premises and resulted in the company’s bank accounts being frozen. Details revealed that the accounts had a balance of around ₹68.53 crores. The raid was in response to multiple FIRs filed against Coda Payments India Pvt Ltd and Garena’s battle royale game.
In the following section, readers can learn more about the case and the actions taken against Coda Payments.
ED raids Coda Payments and freezes bank accounts in an investigation on the company alongside Garena Free Fire
An official press release from the Enforcement Directorate investigated Coda Payments and Garena Free Fire under the Prevention of Money Laundering Act (PMLA), 2002. The raids on Coda Payments India Pvt. Ltd were in connection with the same investigation.
The press release further revealed that the raids were conducted at three premises related to Coda Payments India Pvt Ltd. Furthermore, the Enforcement Directorate froze all bank accounts (balance of ₹68.53 crores as on September 27), merchant IDs in payment gateways, and fixed deposits belonging to the company under the PMLA, 2002.
What was the basis of the investigation against Coda Payments and Free Fire?
The Enforcement Directorate also revealed that the investigation was based on multiple FIRs filed against both Coda Payments and Garena’s BR shooter. The FIRs were related to allegations of unauthorized deductions made by Coda Payments on their website whenever users purchased virtual in-game tokens.
In its press release, the Enforcement Directorate alleged,
The press release also mentions an unethical payment mechanism that is specifically designed to attract more transactions from end users. The Enforcement Directorate further alleged the involvement of Garena’s battle royale game in such transactions.
According to the press release, the Enforcement Directorate further adds,
Since the majority of the end users are children,
Following the investigation, the Enforcement Directorate found that Coda Payments’ India branch was a mere agent of Coda Payments Singapore Pte. Ltd.
Coda Payments India Pvt. Ltd. remitted almost all of the payments collected by it to the parent company in Singapore.
Here’s what the press release revealed about the total amount of money remitted to Coda Payments Singapore Pte. Ltd.,
Therefore, to seize further transactions made by Coda Payments, the Enforcement Directorate has frozen its bank accounts, as mentioned earlier.
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