ED discovered INR 800 Cr in a money laundering investigation into 365 loan apps

August 24, 2022

Share via:

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.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Previous News

Biotech startup Loopworm raised $3.4 million in Seed co-led by Omnivore and WaterBridge Ventures

Next News

Government is changing the FAME-II scheme to address policy flaws

Editorial Team

StartupNews.fyi is a leading global startup and technology media platform known for its end-to-end coverage of the startup ecosystem across India and key international markets. Launched with the vision of becoming a single gateway for founders, investors, and ecosystem enablers, StartupNews.fyi has grown steadily over the years by publishing tens of thousands of verified news stories, insights, and ecosystem updates, reaching millions of startup enthusiasts every month through its digital platforms and communities.