I-T Dept raids instant loan app company Rs 500-cr funds transferred abroad illegally
New Delhi Nov 17 PTI A fintech company engaged in giving instant loans through a mobile app has been found to have repatriated Rs 500 crore non-genuine funds overseas the CBDT said on WednesdayThe information was gathered by the Income Tax Department after it raided the company in Delhi and Gurgaon Haryana on November 9During the search it was revealed that the company has been allegedly charging very high processing fee at the time of disbursement of loansThis results into effective higher burden of compensation on the borrowers the Central Board of Direct Taxes CBDT said in a statementIt said the company is held by a group based in Cayman Island ultimately controlled by an individual of a neighbouring country The company has brought in India nominal initial capital by way of Foreign Direct Investment FDI but took substantial working capital loans from Indian banksThe business model of the company results in high rotation of capital which is evidenced by turnover of Rs 10000 crore in its first year of operation it said The CBDT which frames policy for the department said it was found that the company repatriated about Rs 500 crore to its overseas group companies under the pretext of buying of services in two years However evidence gathered during the search has revealed that such remittances made to the group companies are either highly inflated or non-genuine Evidences found also indicate that internal web-based application for lending business was controlled from outside India it saidThe department also recorded statements of key persons including foreign nationals PTI NES KJ
New Delhi Nov 17 PTI A fintech company engaged in giving instant loans through a mobile app has been found to have repatriated Rs 500 crore non-genuine funds overseas the CBDT said on WednesdayThe information was gathered by the Income Tax Department after it raided the company in Delhi and Gurgaon Haryana on November 9During the search it was revealed that the company has been allegedly charging very high processing fee at the time of disbursement of loansThis results into effective higher burden of compensation on the borrowers the Central Board of Direct Taxes CBDT said in a statementIt said the company is held by a group based in Cayman Island ultimately controlled by an individual of a neighbouring country The company has brought in India nominal initial capital by way of Foreign Direct Investment FDI but took substantial working capital loans from Indian banksThe business model of the company results in high rotation of capital which is evidenced by turnover of Rs 10000 crore in its first year of operation it said The CBDT which frames policy for the department said it was found that the company repatriated about Rs 500 crore to its overseas group companies under the pretext of buying of services in two years However evidence gathered during the search has revealed that such remittances made to the group companies are either highly inflated or non-genuine Evidences found also indicate that internal web-based application for lending business was controlled from outside India it saidThe department also recorded statements of key persons including foreign nationals PTI NES KJ
