ED seizes Rs 8.26 crore from Chinese-owned Pigeon Education Technology
The company could not produce any proof of receipt of service on its part or proof of any advertisement published against the expenses.
By Newsmeter Network Published on 19 May 2023 7:21 AM GMT
New Delhi: Directorate of Enforcement has seized Rs. 8.26 crore from Chinese-owned Pigeon Education Technology India Private Limited under Foreign Exchange Management Act.
The company is providing online education in the name of Odaclass. Earlier ED had conducted search and seizure action against the company.
ED said they found that the company is 100% owned by Chinese nationals and all the affairs of the company including financial decisions are being taken by the persons sitting in China.
During the investigation, it was ascertained that the company has 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 company could not produce any proof of receipt of service on its part or proof of any advertisement published against the expenses.
ED said the director and accounts manager of the company has also admitted during the investigation that the payment was made only on the instructions of Chinese director Liu Kan.
Indian director of the company, Vedanta Hamirwasia stated that the Chinese director told them that the advertisements were published through Google and Facebook. However, no confirmation or invoice raised by these platforms has been submitted.
Further investigation is under progress.
