Hyderabad: Instant Loan application company controlled by China, PC Financial Services Limited (PCF), booked by the Directorate of Enforcement (ED) for violating foreign exchange management law (FEMA) and RS 107 Crore lying in a bank account Thursday.
PCF runs an instant mobile loan application ‘Cashbean’ and is accused of sending money abroad for non-existent software and marketing services.
Ed investigated several NBFC for money laundering through instant micro loans on the mobile application.
“PCFS is a fully owned subsidiary (WOS) of Digital OPLAY services, SA DE CV, Mexico, the ISA WOS TENSPOTPESA LIMITED, Hong Kong, owned by Opera Limited (Cayman Islands) and Wisdom Connection | Holding Inc.
(Cayman Islands).
The main owner is Zhou Yahui, a Chinese While the foreign parent company from PCF brought Rs 173 Crore as FDI for business loans, in a short time the company made foreign money shipping RS 429 Crore for fake software services received from related foreign companies.
“PCF also shows high domestic expenditure from Rs 941 Crore.
Most foreign payments are made for related companies / owned by Chinese people who run opera groups.
Chinese people choose foreign service providers and prices,” said Ed.
According to ED officials, all PCFS payments as ordered by the head of Zhang Hong who immediately reported to Zhou.
PCF sent RS 429 Crore to 13 foreign companies in Hong Kong, China, Taiwan, USA and Singapore with the guise of the license fee for the Cashbean mobile application (RS 245 Crore / year), software technical costs (around Rs 110 Crore) and marketing costs & Online ads (around Rs 66 Crore).
“All of these services are available in India with a fraction of the costs incurred by PCF.
All of its customers are in India but large payments are made abroad without proof of receipt.
During the same period, PCF also posted domestic expenses with the same amount under the head The same.
PCF management failed to provide justification for this expenditure and recognize all remittances carried out to move money from India to a group company account controlled by Chinese promoters, “Ed said.