The battle over alleged money laundering linked to dubious Chinese loan apps took a sharp turn in Kerala, with the High Court stepping in to halt proceedings against cross-border payment platform Nium India.
Justice VG Arun ordered a one-month stay after Nium challenged the Enforcement Directorate’s (ED) action under the Prevention of Money Laundering Act. The company argued it had been pulled into the case without even being heard — a basic legal safeguard under Section 223 of the Bhartiya Nagarik Suraksha Sanhita.
The Court found weight in that argument, noting that the Supreme Court had already made it clear in a recent ruling that accused parties must be given a fair chance before cognizance can be taken.
The wider case began with eleven FIRs filed in Kerala and Haryana by individuals who said they were extorted through predatory loan apps. Victims alleged that the operators blackmailed them by misusing personal data stolen from their phones. Investigators claim that the illicit proceeds — pegged at over ₹230 crore — were laundered through shell firms and disguised as payments for software, digital services, or even tour packages, before being routed overseas.
According to the ED, Nium’s payment rails were among the channels used. The agency alleged that the platform’s systems were exploited to skirt reporting rules and that the company, along with one of its directors, should be held liable. A special court had taken cognizance of this complaint back in May, issuing summons to the firm.
Nium, however, insists it is being wrongfully dragged in. The company told the Court it was neither named in the original FIRs nor in the Enforcement Case Information Report. It stressed that it only acted as a collection agent, facilitating remittances to its Singapore parent, and had no control over the origin of funds. “There was no intent, knowledge, or role in laundering,” its plea stated.
The firm also sought the release of properties frozen in the probe, claiming that the ED’s actions amounted to overreach.
For now, the High Court’s stay order gives Nium a temporary shield — though the larger storm surrounding the Chinese loan app racket, its alleged blackmail tactics, and the vast money trails it left behind, remains far from settled.
