March 29, 2024

Hyderabad: The Enforcement Directorate (ED) has arrested the CEO and promoter of Kudos Finance and Investment Private Limited, an NBFC company, under the provisions of the Prevention of Money Laundering Act 2002.

Kudos name surfaced after the company provided licenses to Chinese loan apps.

Pavitra Pradip Walvekar, the CEO of Kudos, was produced before the PMLA special court Hyderabad and remanded to judicial custody for 15 days.

ED has been conducting an investigation against a number of Indian NBFC companies involved in providing instant personal loans via mobile apps. It was revealed that various fintech companies backed by Chinese funds have made agreements with these NBFC companies to provide instant personal microloans of terms ranging from seven to 14 days.

According to the ED, Kudos purportedly engaged fintech (digital lending partners) companies as service providers to assist in identifying prospective customers, verifying their eligibility, collecting information/documents, conducting due diligence, collecting pre-disbursement documents, arranging the execution of the loan agreement, assisting with collections/recovery of principal and interest payments, and attending service requests/product-related queries for the retail loans offered by the company.

Although it was projected that the NBFC had engaged fintech companies for such activities, in reality, they allowed the fintech companies to misuse the valuable NBFC license of Kudos. Kudos was taking huge amounts as…

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