ED seizes 8.26 Cr from China-owned education company
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New Delhi: Funds worth Rs 8.26 core were seized from a Bangluru-based online education company fully owned and operated by Chinese nationals, the Enforcement Directorate informed on Friday. The seizure was part of a probe related to contravention of the foreign exchange law, PTI reported.
The ED seized the funds of Pigeon Education Technology Private Limited under Section 37A of the Foreign Exchange Management Act (FEMA), the central probe agency said in a statement.
The company is specialized in providing online classes under the brand name "Odaclass".
In April also, ED ran searches over the company and said, "…found that the company is 100 per cent owned by Chinese nationals and all the affairs of the company, including financial decisions, are being taken by the persons sitting in China".
The agency alleged that it was ascertained that the company has siphoned off ₹ 82.72 crores to China and Hong Kong in the name of advertisement and marketing expenses "on the instructions" of Chinese director Liu Can.
"The company could not produce any proof of receipt of service on its part and proof of any advertisement published against the said expenses," ED said.
According to the probe agency, the director and accounts manager of the company admitted that the payments were made under the instructions of Can. The company's director in India, Vedanta Hamirwasia, stated that the Chinese director told them that the advertisements were published through Google and Facebook. But no confirmation or invoice raised by these platforms has been submitted, ED said.