The Enforcement Directorate (ED) allegedly discovered more than INR 800 Cr as proceeds of crime in a money laundering investigation into 365 loan apps and their non-banking financial companies (NBFCs) partners.
According to an ET report, the investigation revealed that these fintech companies disbursed more than INR 4,000 Cr in loans. More than INR 700 Cr was recovered as ‘processing fees’ by these loan apps, while around INR 85 Cr was collected as interest and penalties. These loan apps used defunct NBFCs, obtaining RBI-issued NBFC licences in exchange for a profit share of up to 1% of net proceeds. Furthermore, the majority of these fintech apps had Chinese backers, and the proceeds were being remitted to these Chinese nationals.
