New Delhi, May 19 (). The Enforcement Directorate (ED) on Friday said that Odclass, a company of Pigeon Education Technology India Pvt Ltd, which provides online education, is owned by Chinese nationals and the Indian directors are nothing but puppets. The ED said Pigeon Education Technology India Pvt Ltd siphoned off Rs 82.72 crore to China and Hong Kong.
In the case of the firm, we have seized Rs 8.26 crore under Section 37A of the Foreign Exchange Management Act, the ED said.
The company is providing online education under the name of Odaclash.
The ED had earlier conducted search and seizure operations against the company and found that the company is 100 per cent owned by Chinese nationals and all affairs of the company, including financial decisions, are being taken by persons based in China.
During investigation, it was found that the company diverted Rs 82.72 crore to China and Hong Kong in the name of advertising and marketing expenditure on the instructions of Chinese director Liu Can, the official said. The Company could not produce any proof of receipt of service.
The ED said that the director and accounts manager of the company have also admitted during the investigation that the payments were made on the instructions of the Chinese director, Liu Kan.
The Indian director of the company, Vedant Hamirvasia, said that the Chinese director told him that the said advertisements were published through Google and Facebook, however, no confirmation or invoice was submitted by these platforms.
Investigation is on in the matter.
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