HYDERABAD: A division bench of the Telangana High Court set aside a single judge order, which had directed Enforcement Directorate (ED) to release Rs 15 crore from the seized amount belonging to PC Financial Services Private Limited which is behind instant mobile loan app companies.
When cases were filed against the firms for levying usurious rate of interest and processing fees and for harassment and threatening of defaulters through call centres for coercive recovery of loans, the ED also started probe and found that they had violated the Prevention of Money Laundering Act.
The ED said foreign parent companies of PC Financial Company brought in FDI worth Rs 172 crore for lending business and within a short period, made foreign outward remittances worth Rs 429.29 crore as payments for non-existent software services received from related foreign companies.
The company also showed high domestic expenditure of around Rs 900 crore. The ED…