Hyderabad: The Enforcement Directorate, on Friday, arrested Pavitra Pradip Walvekar, promoter director and CEO of Pune-based Kudos Finance and Investment Private Limited, an NBFC company, under the Prevention of Money Laundering Act (PMLA). He was produced before the PMLA Special Court, Hyderabad and remanded to judicial custody for 15 days.
Further investigation is on.
Lately, the ED has been investigating several Indian NBFC companies, in the business of disbursing instant personal loans via mobile apps, for money laundering. It found that various fintech companies backed by Chinese funds joined hands with these NBFCs to provide instant loans for a term ranging from seven to 14 days.
In the case of Kudos, the ED found that although it is projected that the NBFC engaged fintech companies to offer loans, in reality, they allowed the latter to misuse the Kudos’ NBFC license. “Kudos has no mobile app of its own…the entire lending operation is being done by the fintech app from its own funds. In return Kudos is taking a commission without doing any due diligence or hard work,” a release issued by ED stated. It added: “In the entire business, fintech companies gained a profit of around Rs 544 crore and Kudos gained a profit of around Rs 24 Crore,” ED stated adding. “This is in complete violation of the RBI guidelines on NBFCs and thus, the entire profit of Rs 568 crore is nothing but proceeds of crime. The source of funds with the fintech companies is also…
Further investigation is on.
Lately, the ED has been investigating several Indian NBFC companies, in the business of disbursing instant personal loans via mobile apps, for money laundering. It found that various fintech companies backed by Chinese funds joined hands with these NBFCs to provide instant loans for a term ranging from seven to 14 days.
In the case of Kudos, the ED found that although it is projected that the NBFC engaged fintech companies to offer loans, in reality, they allowed the latter to misuse the Kudos’ NBFC license. “Kudos has no mobile app of its own…the entire lending operation is being done by the fintech app from its own funds. In return Kudos is taking a commission without doing any due diligence or hard work,” a release issued by ED stated. It added: “In the entire business, fintech companies gained a profit of around Rs 544 crore and Kudos gained a profit of around Rs 24 Crore,” ED stated adding. “This is in complete violation of the RBI guidelines on NBFCs and thus, the entire profit of Rs 568 crore is nothing but proceeds of crime. The source of funds with the fintech companies is also…
