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HomeNewsED seizes funds worth ₹8.26 crore of Chinese-owned ed-tech in Bengaluru

ED seizes funds worth ₹8.26 crore of Chinese-owned ed-tech in Bengaluru

The Enforcement Directorate has seized funds worth 8.26 crore of a Bengaluru-based online education company, as part of a probe linked to the alleged contravention of the foreign exchange law. This company is fully owned and controlled by Chinese nationals. The funds of Pigeon Education Technology Private Limited have seen seized under Section 37A of FEMA, news agency PTI has reported citing the statement issued by the ED.

“The company provided online education under the brand name “Oda class”, it said.

In April, the ED had conducted searches against the group and had “found 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”.

It was ascertained, the agency alleged, that the company has siphoned off 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,” it said.

The director and accounts manager of the company “admitted” during the investigation that the payment was made only on the instructions of Can, the ED said.

The company’s Indian director 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, it added.

(With inputs from PTI)

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