It said the company is held by a group based in Cayman Island (Representative)
New Delhi:
CBDT said on Wednesday a fintech company engaged in instant lending through a mobile app was found to have transferred Rs500 worth of “non-genuine” funds overseas.
The information was collected by the Income Tax Department after it raided the company in Delhi and Gurgaon (Haryana) on 9/11.
“During the search, it was discovered that the company was allegedly charging very high processing fees at the time of disbursement of the loans.”
“This results in a higher effective compensation burden on borrowers,” the Central Commission for Direct Taxes (CBDT) said in a statement.
It said the company is held by a group based in Cayman Island, which is ultimately “controlled by an individual of a neighboring state.”
“The company has brought in nominal initial capital to India by way of Foreign Direct Investment (FDI) but has received substantial working capital loans from Indian banks.
“The company’s business model offers high capital turnover, as evidenced by a turnover of Rs 10,000 crore in its first year of operation,” it said.
The CBDT, which frames the policy for the department, said it had found the company had repatriated around Rs 500 crore to overseas group companies under the pretext of purchasing services over two years.
“However, evidence gathered during the search revealed that the deposits to companies belonging to this group were either highly inflated or not genuine.”
“The evidence found also indicates that the internal web-based application for the lending business was controlled from outside of India,” it said.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
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