Business

Enforcement Directorate Seizes Funds Worth Rs. 8 Crore Of Chinese-Owned Company

The Enforcement Directorate announced on Friday that it has confiscated cash worth Rs 8.26 crore from a Bengaluru-based online education company that was completely owned and managed by Chinese nationals as part of an investigation into alleged violations of the foreign exchange regulations.

In a statement, ED said, “Pigeon Education Technology Private Limited’s cash was confiscated under Section 37A of the Foreign Exchange Management Act (FEMA)”.

According to the ED, the company offered online education under the brand name ‘Odaclass’.

The Enforcement Directorate (ED) conducted searches against the group in April and discovered that the company is 100 percent owned by Chinese nationals and all the affairs of the company, including financial decisions, are being taken by the persons sitting in China.

According to the agency, the corporation siphoned off Rs 82.72 crore to China and Hong Kong in the name of advertisement and marketing expenses on the instructions of Chinese director Liu Can.

The agency further said, “The company could not produce any proof of receipt of service on its part and proof of any advertisement published against the said expenses”.

“During the investigation, the company’s director and accounts manager admitted that the payment was made solely on Can’s instructions”, the ED continued.

“Vedanta Hamirwasia, the company’s Indian director alleged that the Chinese director informed them that the adverts were published on Google and Facebook. However, no confirmation or invoice generated by these platforms has been submitted”, the agency added.

Also read: Stock Market Update: Sensex Dips 120 Points; Nifty Below 18100

Spriha Rai

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