The Government on Monday informed the Lok Sabha that Reserve Bank of India has received complaints against 1,500 digital lending applications (popularly known as loan apps). It also informed the Lower House that there will be no change in service conditions of employees of BPCL post-disinvestment.

Loan app

In a written answer to a question in the Lok Sabha, Minister of State in Finance Ministry Anurag Singh Thakur said no data is captured by the Corporate Affairs Ministry regarding the number of registered companies providing online apps-based loan in the country at present. Meanwhile, the “RBI has intimated that it has received complaint against 1,509 digital lending applications,” he said. This includes 490 complaints against registered NBFCs which are operating digital loan apps, while 1,019 complaints are against unregistered/unregulated digital loan applications.

In cases where the app pertains to any NBFC registered with the RBI, the complaints are forwarded to NBFC Ombudsman/Consumer Education and Protection Cell (CEP Cell) / Regional Office for resolution of customer grievance. In cases where the app is managed by a company not falling in the ambit of the RBI, the complaints are taken up with the Registrar of Companies (RoC) concerned in the State Level Coordination Committee.

In cases where no information is available regarding the lending institution, the complainant is asked to forward a copy of his/her loan agreement with the lending institution and upon examination the matter is shared with Economic Offences Wing, of respective State Governments in the State Level Coordination Committee.

BPCL disinvestment

Earlier, in a response to starred question (when the Minister concerned is supposed to give oral as well as written answer), Finance Minister Nirmala Sitharaman allayed the fear of employees of BPCL which has been put on block. There is apprehension that the new owner of the company might tweak service conditions of employees.

“The proposed strategic disinvestment of the company is on a ‘going concern’ basis, with change in ownership only and hence, there is no question of rehabilitation of employees, who will continue to be company’s employees in terms of the agreed terms and conditions laid down in the Share Purchase Agreement for such strategic sale,” she said in her written response.

Black money

In another question, Thakur informed the house that as on December 31, 2020, notices have been issued in 475 cases under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, involving undisclosed foreign assets and income of over ₹14,300 crore.

On account of deposits made in unreported foreign bank accounts in HSBC cases, undisclosed income of more than ₹8,460 crore have been brought to tax and penalty of more than ₹1,290 crore levied, so far. Sustained investigations conducted in the cases revealed by International Consortium of Investigative Journalists (ICIJ) have led to detection of more than ₹11,010 crore of credits in the undisclosed foreign accounts, so far.

Further, he said in the Panama Paper Leaks investigations, undisclosed foreign investments amounting to over ₹1,700 crore have been detected, so far.

Tax dispute

Answering questions related with retrospective taxation, Thakur said two arbitral awards have been given in favour of Vodafone and Cairn group respectively. “An application has been filed in the High Court of Singapore to set aside the award dated September 25, 2020 in the case of Vodafone International Holdings BV. In the case of Cairn group the matter is under consideration of the government,” he said.

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