ED says educational firm Odaclass siphoned off Rs.82 cr to China and Hong Kong
The Enforcement Directorate (ED) on Friday said that 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.
The ED said that Pigeon Education Technology India Private Limited siphoned off Rs.82.72 crore to China and Hong Kong.
“We have seized Rs.8.26 crore in the case of the firm under Section 37A of the Foreign Exchange Management Act (FEMA),” the ED 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 percent 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 Kan. 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.
The ED said that the director and accounts manager of the company has also admitted during the investigation that the payments were made only on the instructions of Chinese director Liu Kan.
The Indian director of the company, Vedanta Hamirwasia stated that the Chinese director told them that the said advertisements were published through Google and Facebook, however, no confirmation or invoice raised by these platforms was submitted.
Further investigation into the matter is on.
[With Inputs from IANS]
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