HC dismisses single bench order over mobile app scam
HYDERABAD: A divisional bench of the Telangana High Court has quashed an order by a single judge, who ordered the Enforcement Department (ED) to release Rs 15 crore of the seized amount belonging to PC Financial Services Private Limited which originated instant mobile loan app companies.
When lawsuits were filed against companies for charging usurious interest rates and processing fees and for harassing and threatening defaulters through coercive loan collection call centers, the ED has also opened an investigation and found that they had violated the Money Laundering Prevention Act.
The ED said that the foreign parent companies of PC Financial Company brought in FDI worth Rs. worth Rs 429.29 crore as payments for non-existent software services received from related foreign companies.
The company also posted strong domestic spending of around Rs 900 crore. The ED found that the exorbitant payment was authorized by the company’s bogus Indian directors without any due diligence and on the instructions of the country’s head Zhang Hong, who reported directly to Zhou Yahuri of China.
The Respondent handed over currency worth Rs 429,29,65,295 to 13 companies located in Hong Kong, China, Taiwan and Singapore under the guise of payments for license fees for the Cash mobile application Bean. As a result, the ED seized the assets of PC Financial Services Private Limited.
The company applied to the High Court to seek the release of sums seized for the management of its business and the payment of wages. Considering the plea, the single judge ordered the ED to release Rs 15,35,45,317 within a week. ED moved the division bench to oppose it.