ED Orders Confiscation of Assets in CashBean Money Lending Probe

The Enforcement Directorate has ordered confiscation of over Rs 252 crore of assets from PC Financial Services Pvt Ltd, an Indian subsidiary of a Norwegian company. The company is charged with illegal money lending under its mobile app 'CashBean', influenced by Chinese control, violating FEMA regulations.

In a significant move, the Enforcement Directorate (ED) has mandated the confiscation of assets exceeding Rs 252 crore from PC Financial Services Pvt Ltd (PCFS), an Indian subsidiary of the Norway-based Opera Group. Allegations revolve around its 'CashBean' mobile lending app, controlled by Chinese owners, facing accusations of illegal operations.

This action follows a comprehensive probe under the Foreign Exchange Management Act (FEMA), culminating in the imposition of fines surpassing Rs 2,146 crore on PCFS. The ED reported that the company remitted substantial funds overseas under the guise of importing software licenses, which upon investigation, appeared fraudulent.

Further probes by the Reserve Bank of India revealed PCFS charged exorbitant interest rates, employed unauthorized logos for recovery processes, leading to its deregistration as a non-banking financial entity. While adjudicating on proven FEMA violations, the ED confirmed asset confiscation orders, despite ongoing appeals from the company.

(With inputs from agencies.)