“Zhau Yahui, owner of the company, is a Chinese billionaire entrepreneur and one of the largest web game developers in China whose estimated net worth, according to open source, is $2.2 billion. Therefore , this company can very easily be managed and certainly cannot run out of funds,” the ED said in his affidavit before the Telangana High Court.
A divisional bench overturned the relief granted to the company indicted by a single judge. When the ED tied ₹288 crore lying in the company’s accounts, the company went to court asking for the release of some of the money for the alleged purpose of paying the wages of its staff. A single judge earlier asked the ED to release Rs 15 crore from the seized accounts. Injured by the single judge’s order, ED appealed.
When the appeal was filed before Chief Justice Satish Chandra Sharma and Justice Abhinand Kumar Shavili, ED Deputy Director Abhishek Goel appeared in court and said that their action was within FEMA and that the competent authority had already confirmed the seizure.
Abhishek also brought to the notice of the court the latest RBI action voiding the NBFC registration granted to PCFSPL. The bench, while acknowledging the points raised by the ED, said the company should avail itself of alternative remedies and rescind the relief order issued by the Single Judge.
ED cousel Anjali Agarwal said the company made a profit of ₹11,700 crore in one year with a meager investment of ₹173 crore in India. Authorities noticed that an amount of ₹429 crore was sent by the company to China through overseas remittances. “We could only attach ₹270 crore and we haven’t got our hands on the remaining part yet,” ED’s lawyer said.