(PTI) New delhi date. 3

The Enforcement Directorate (ED) has seized Rs 104 crore from a Chinese-controlled NBFC (non-banking finance company), authorities said in a statement. The action was taken for violating the rules of the Foreign Exchange Management Act (FEMA).

According to the agency, the money in the bank accounts and virtual accounts of a non-banking financial company (PCBS) called PC Financial Services Pvt Ltd (PCFS) has been seized. A total of Rs 104.5 crore has been seized by the ED.

The case came to light recently during an investigation by some NBFCs and fintech companies, the ED said in a statement. These companies were offering instant loans through mobile app. However these loans were given at very high interest rates.

It is worth mentioning that after the Koro epidemic last year, many people faced financial constraints and when they needed money, they took loans at very high rates through such a mobile app.

PCFC was a wholly owned subsidiary of Apple Digital Services. However, the company later became a wholly owned subsidiary of Hong Kong's Tenspot Pesa Limited.

According to the ED, PCFC was originally an Indian company and was started in the 19th century by an Indian citizen. It was licensed as an NBFC in 2007. The ownership of the company was transferred to a Chinese company in 2014 after RBI approval.

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