The Enforcement Directorate has seized ₹131.12 crore lying in the bank and payment-gateway accounts of PC Financial Services Private Limited (PCFS) under the Foreign Exchange Management Act, in connection with the scam involving extortion of high interest rates against the micro personal loans given via mobile Apps.
In the same case, the agency had earlier seized ₹106.93 crore linked to the company controlled by a Chinese national named Zhou Yahui. Funds of ₹90 crore have already been transferred to the ED accounts.
As alleged, PCFS provided instant personal micro loans through its mobile App “Cash Bean”. It was a wholly owned subsidiary of Oplay Digital Services, SA de CV (Mexico), which was wholly owned subsidiary of Hong Kong-based Tenspot Pesa Limited, which in turn was co-owned by Opera Limited (Cayman Islands) and Wisdom Connection I Holding Inc (Cayman Islands).
The ED found that 52.63% of Wisdom Connection I Holding Inc and 42.35% of Opera Limited were owned directly or indirectly by Zhou Yahui.
As it turned out, PCFS was incorporated by Indian nationals in 1995 and it got the Non-Banking Financial Company licence in 2002. Following an approval from the RBI in 2018, the company’s ownership moved to the Chinese-controlled company.
The agency found that the overseas parent companies of PCFS brought in ₹173 crore as Foreign Direct Investment for lending business and within a short span of time, made outward remittances worth…