ED seizes Rs 3.94cr from a firm in FEMA violation case
The Enforcement Directorate (ED) on Friday said it has seized Rs 3.94 crore in the case involving Pigeon Education Technology India Private Limited under Section 37A of the Foreign Exchange Management Act (FEMA).
IANS
Jul 14, 2023 10:28
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New Delhi, July 14 (IANS) The Enforcement Directorate (ED) on Friday said it has seized Rs 3.94 crore in the case involving Pigeon Education Technology India Private Limited under Section 37A of the Foreign Exchange Management Act (FEMA).
Earlier, an amount of Rs 8.31 crore was seized by the ED in this case.
Thus, the total seizure under Section 37A of FEMA in the case stands at Rs 12.25 crore.
The company provides online education in the name of Odaclass.
The ED searches against the company revealed that the company is 100 per cent owned by Chinese nationals and all the matters of the company including financial decisions are being taken by the individuals residing in China.
Investigation further revealed that the company has siphoned off Rs 82.72 crore to China and Hong Kong, under the pretext of advertising and marketing expenses on the instructions of Chinese director Liu Kan.
However, the company could not produce any proof of receipt of service on its part and proof of any advertisement published against the said expenses.
"Further, the director and accounts manager of the company also admitted during the investigation that the payment were made only on the instructions of Chinese director Liu Kan," the ED said.
The Indian director of the company stated that the Chinese director informed that the advertisements were published through Google and Facebook. However, no confirmation or invoice raised by these platforms has been submitted.
