shot-button
Ganesh Chaturthi Ganesh Chaturthi
Home > News > India News > Article > ED seizes funds worth Rs 826 crore of Chinese owned education company in Bengaluru

ED seizes funds worth Rs 8.26 crore of Chinese-owned education company in Bengaluru

Updated on: 19 May,2023 12:10 PM IST  |  Bengaluru
PTI |

The funds of Pigeon Education Technology Private Limited have been seized under Section 37A of the Foreign Exchange Management Act (FEMA), it said in a statement

ED seizes funds worth Rs 8.26 crore of Chinese-owned education company in Bengaluru

Representative image

The Enforcement Directorate on Friday said it has seized funds worth Rs 8.26 crore of a Bengaluru-based online education company, fully owned and controlled by Chinese nationals, as part of a probe linked to the alleged contravention of the foreign exchange law.


The funds of Pigeon Education Technology Private Limited have been seized under Section 37A of the Foreign Exchange Management Act (FEMA), it said in a statement.


The company provided online education under the brand name "Odaclass", it said.


The Enforcement Directorate (ED) conducted searches against the group in April and "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".

Also Read: SC seeks ED's response on Satyendar Jain's bail plea in money laundering case

It was ascertained, the agency alleged, 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," 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.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!

Register for FREE
to continue reading !

This is not a paywall.
However, your registration helps us understand your preferences better and enables us to provide insightful and credible journalism for all our readers.

Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK