PB Fintech’s lending arm Paisabazaar, a prominent player in the fintech sector, recently received an order from the Adjudicating Authority under the Prohibition of Benami Property Transactions Act. This regulatory development comes in response to alleged benami transactions involving certain vendors associated with Paisabazaar.
The order, issued on March 26, has raised concerns regarding Paisabazaar’s role as the beneficial owner in its dealings with these vendors. Despite the allegations, the company has expressed its intention to challenge the order through appropriate legal channels.
Paisabazaar, known for its digital consumer credit marketplace offering various financial products, has witnessed significant traction, with 71 lakh transacting customers by the end of the December quarter. During this period, the platform facilitated disbursements amounting to ₹9,986 crore, marking a substantial 84% year-over-year growth.
To enhance its collection processes, Paisabazaar recently established a new subsidiary, Paisa Financial Services, with an initial investment of ₹3 crore. This strategic move underscores the company’s commitment to operational efficiency and regulatory compliance.
While PB Fintech declined to provide detailed comments on this regulatory development, the industry will closely monitor how Paisabazaar navigates through the legal implications and potential impact on its operations.
Source: Inc42 Media