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The Enforcement Directorate (ED) has unearthed that Pigeon Education Technology India Private Limited siphoned off Rs 82.72 crore to China and Hong Kong.
According to ED, Odaclass, a company of Pigeon Education Technology India Private Limited, which provides online education, was owned by Chinese nationals and the Indian directors were nothing but puppets.
“We have seized Rs 8.26 crore in the case of the firm under Section 37A of the Foreign Exchange Management Act,” an ED official said.
The company is providing online education in the name of Odaclass.
The ED had earlier conducted search and seizure action against the company and 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 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 and proof of any advertisement published against the said expenses,” said the official.
According to ED, the director and accounts manager of the company have admitted during investigation that the payments were made on the instructions of Chinese director Liu Kan.
The Indian director of the company, Vedanta Hamirwasia said that the Chinese director told them that the said advertisements were published through Google and Facebook. But no invoice raised by these platforms were submitted. Currently, ED is conducting further investigations into the financial transactions of Pigeon Education Technology India Pvt Ltd.
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