India, Nov. 13 -- The Karnataka High Court (HC) has rejected a plea by Razorpay cofounders Harshil Mathur and Shashank Kumar seeking to quash a serious fraud investigation office (SFIO) complaint. The complaint pertains to alleged lapses in merchant onboarding and monitoring of transactions linked to a digital lending company accused of predatory recovery practices.

In a similar matter concerning alleged transactions linked to an illegal digital lending operation, the Karnataka High Court had quashed money-laundering proceedings initiated by the Enforcement Directorate (ED) against Razorpay, observing that there was no prima facie material to establish that the company had knowingly facilitated the transfer of proceeds of crime.

Respond...