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 an order dated November 4, Justice M Nagaprasanna held that the allegations against the cofounders involved disputed questions of fact that could only be examined during trial. The court said there was no reason to interfere with the proceedings at this stage, given the matter was still at a nascent stage.

The SFIO has named Razorpay's whole-time director Mathur and manag...