The Income Tax Department has raided a fintech company providing short-term personal loans through a mobile app.
The department conducted raids on commercial and residential establishments of the company in Delhi and Gurugram. During the search operation it was found that the company used to charge huge amount as processing fee at the time of providing loan. This put a heavy burden on the borrowers.
The company is controlled by a group based in the Cayman Islands, which is run by a person from a neighboring country. The company came to India through foreign direct investment with small capital and received a large amount in the form of capital loans from the banks here.
The company had already done business of ten thousand crore rupees in the first year and investigation is going on in this matter.
