Income tax raids in Haryana, Delhi over instant loans via app: The Tribune India

New Delhi, November 17

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

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

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

“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 large working capital loans from Indian banks. The company’s business model results in high capital turnover as evidenced by the turnover of Rs 10,000 crore in its first year of operation,” the Ministry of Finance said.

Computer sleuths noted that a repatriation of around Rs 500 crore was made by the company to its overseas arms under the guise of purchasing services in two years.

“Evidence gathered during the search revealed that these payments made to group companies are either highly inflated or inauthentic. The evidence also indicates that the internal web application for lending activities was controlled from outside India. Statements from foreign nationals have been recorded,” the ministry said. —TNS