Income Tax Department
IT Dept busts app-based instant loan company that illegally transferred Rs 500 cr outside India
New Delhi/IBNS: The Income Tax Department during raids in Delhi and Gurgaon (Haryana) on November 9 has found that an app-based instant loan company has repatriated Rs 500 crore "non-genuine" funds overseas,the CBDT said on Wednesday.
"During the search, it was revealed that the company has been allegedly charging very high processing fee at the time of disbursement of loans, reported PTI.
"This results into effective higher burden of compensation on the borrowers," the Central Board of Direct Taxes (CBDT) said in a statement.
The company is held by a group based in Cayman Island, and is "actually 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 banks.
"The business model of the company results in high rotation of capital, which is evidenced by turnover of Rs 10,000 crore in its first year of operation," it said.
The company transferred 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."
"Evidence found also indicate that internal web-based application for lending business was controlled from outside India," it said.
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