It is revealed by income tax and enforcement sources that the raid conducted by them they found out outsourced incomes, many discrepancies found in gold loan, some hawala transactions in national and international basis, the investigation report will go to its completion process, the total Muthoot bank will lost its NBFC [Non Banking Financial Company] licence and it is heavy burden for those who invest in the various branches of this bank, source said.
Kerala based financial institution Muthoot Finance faced the raid by enforcement and I-T department on August on wards and found larger number of irregularities and discrepancies in gold and without prior consent of RBI, this institution convert the gold to forms as gold bar in their own label. The various branches two or more times raided by authority to conform such activity that involved in this circumstances.
Heavy expansion made in Muthoot Finance by diversified activity in various place in India. They promote to attractive incentive to those who invest money or gold to their firm and large number of people have invest money for to get heavy interest as compared to other financial institution, they may lost their earning as demonstration worked. when they are not raveled that income in income tax submission they may charge three times of their outsource income and face the criminal proceeding including imprisonment also.