A fintech firm engaged in giving immediate loans by means of a cellular app has been discovered to have repatriated Rs 500 crore “non-genuine” funds abroad, the CBDT mentioned on Wednesday.
The data was gathered by the Revenue Tax Division after it raided the corporate in Delhi and Gurgaon (Haryana) on November 9.
“In the course of 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 increased 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, in the end “managed by a person of a neighbouring nation.”
“The corporate has introduced in India nominal preliminary capital by the use of Overseas 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 below the pretext of shopping for of providers in two years.
“Nonetheless, 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 exterior India,” it mentioned.
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