A fintech firm engaged in giving prompt loans by way of a cell app has been discovered to have repatriated Rs 500 crore “non-genuine” funds abroad, the CBDT mentioned on Wednesday.
The knowledge was gathered by the Earnings Tax Division after it raided the corporate in Delhi and Gurgaon (Haryana) on November 9.
“Throughout the search, it was revealed that the corporate has been allegedly charging very excessive processing charge on the time of disbursement of loans.”
“This outcomes into efficient greater burden of compensation on the debtors,” the Central Board of Direct Taxes (CBDT) mentioned in a press release.
It mentioned the corporate is held by a gaggle primarily based in Cayman Island, finally “managed by a person of a neighbouring nation.”
“The corporate has introduced in India nominal preliminary capital by means of International Direct Funding (FDI) however took substantial working capital loans from Indian banks.
“The enterprise mannequin of the corporate ends in excessive rotation of capital, which is evidenced by turnover of Rs 10,000 crore in its first yr of operation,” it mentioned.
The CBDT, which frames coverage for the division, mentioned it was discovered that the corporate repatriated about Rs 500 crore to its abroad group corporations underneath the pretext of shopping for of companies in two years.
“Nevertheless, proof gathered in the course of the search has revealed that such remittances made to the group corporations are both extremely inflated or non-genuine.”
“Evidences discovered additionally point out that inside web-based software for lending enterprise was managed from outdoors India,” it mentioned.
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