ED seizes Rs 131 crore of Haryana-based firm indirectly owned by a Chinese national

The Enforcement Directorate has seized Rs 131.11 crore of a Haryana-based PC Financial Services Private Limited, a Non-banking Financial Company, under the Foreign Exchange Management Act, officials said. The ED, during a money laundering investigation, initiated a probe under FEMA against PC Financial Services Private Limited, an NBFC company, that provides instant personal micro loans through its mobile application ‘Cashbean’ for suspicious foreign outward remittances. According to ED, their investigation has revealed that the foreign parent companies of PC Financial Services Private Limited brought FDI worth Rs 173 crore for lending business and within a short span of time, made foreign outward remittances worth Rs 429.29 crore in the name of payments for software services received from related foreign companies. “PC Financial Services Private Limited remitted forex worth Rs 429 crore to 13 foreign companies located in Hong Kong, China, Taiwan, USA and Singapore in the guise of payments for license fee for Cash Bean Mobile APP, software technical fee, online marketing & The suspects were allegedly unable to submit proof of payments made to foreign companies against the services.