Income Tax Raids in Haryana, Delhi for Instant Loans Via App: The Tribune India

New Delhi, November 17

The Income Tax Department today conducted search and seizure operations in Delhi and Haryana in the case of a fintech company offering instant short-term personal loans through a mobile app.

The searches were carried out on commercial and residential premises in Delhi and Gurugram.

During the search, it was revealed that the company allegedly charged high processing fees when the loans were disbursed.

“The company is owned by a group based in the Cayman Islands. The company brought nominal initial capital to India through FDI, but took out substantial working capital loans from Indian banks. The company’s business model results in high capital turnover, as evidenced by turnover of Rs 10,000 crore in its first year of operation, ”the finance ministry said.

Computer detectives noted that a repatriation of around Rs 500 crore had been made by the company to its weapons abroad under the pretext of purchasing services in two years.

“Evidence gathered during the search revealed that these remittances to group companies are either very inflated or not genuine. Evidence also indicates that the internal web application for lending activities was controlled from outside India. Statements by foreign nationals have been recorded, ”the ministry said. – TNS

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