New Delhi. The Enforcement Directorate (ED) on Friday said it has seized Rs 8.26 crore from a Bengaluru-based online education company. This company is wholly owned and controlled by Chinese citizens.
The ED said that the seizure was made as part of an investigation related to alleged violation of the Foreign Exchange Act. The ED said in a statement that the funds of Pigeon Education Technology Pvt Ltd were seized under Section 37A of the Foreign Exchange Management Act (FEMA). The company was providing online education under the brand name “Odaclass”, according to the statement.
The ED had probed the group in April and “found that 100 per cent ownership of the company is with Chinese nationals and all matters of the company including financial decisions are being taken by persons sitting in China”. alleged that the company misappropriated Rs 82.72 crore in the name of advertising and marketing expenses on the “instructions” of Chinese director Liu Can.
PC:News18