Illegal Rs. IT raids 500 crore transfer loan app company

Investigation of Income Tax Department in Delhi and Gurgaon

The company, which provides instant loans from mobile apps, used to charge high processing fees when repaying loans.

The company is owned by a group from the Cayman Islands and was run by a man from a neighboring country.

New Delhi: The Income Tax department has raided a fintech company, which provides instant loans through a mobile app, and exposed the illegal sending of Rs 500 crore abroad, the CBDT said in a statement.

The income tax department raided the company's premises in Delhi and Gurgaon (Haryana). The investigation also found that the company was charging exorbitant processing fees when issuing loans. The Central Board of Direct Taxes (CBDT) said in a statement that higher processing fees had added to the financial burden on borrowers.

Investigations revealed that the company was owned by a group from the Cayman Islands. The company was run by a man from a neighboring country. According to the CBDT, the company was started by ordinary foreign direct investment (FDI) with ordinary capital but borrowed heavily from Indian banks.

The company had a turnover of Rs 10,000 crore in its first year. According to the CBDT, a body that makes high decisions for the income tax department, the company illegally transferred Rs 500 crore from India to its group companies abroad. The probe also found that the fintech company, which provides instant loans through a mobile app, was operated from outside India.