The Enforcement Directorate (ED) has seized ₹3.94 crore within the case associated to Pigeon Education Technology India Private Limited below the Foreign Exchange Management Act (FEMA).

The agency had earlier seized ₹8.31 crore in the identical case taking the full quantity seized to ₹12.25 crore.

The firm, which supplies on-line training below the title ‘Oda Class’, is allegedly 100% owned by Chinese nationals and all its affairs, together with monetary choices, are being taken by individuals working from China, mentioned the company.

According to the ED, its investigation revealed that the corporate siphoned off ₹82.72 crore to China and Hong Kong on the pretext of promoting and advertising bills, on the directions of its Chinese director Liu Kan. However, when the company sought particulars, the corporate couldn’t produce “any proof of receipt of service on its part and evidence of any advertisement published against the said expenses”.

“Further, the director and the accounts manager of the company have also admitted during investigation that the payments were made only on the instructions of Chinese director Liu Kan,” the ED mentioned.  

The Indian director of the corporate purportedly advised the ED that the Chinese director advised staff that the ads have been printed by means of Google and Facebook. But there was no affirmation about it and likewise, no bill raised by these platforms was submitted for corroboration.

In April, the ED had conducted searches on two premises linked to Pigeon Education Technology India Private Limited. It had then alleged that the corporate was a part of a “complex web of entities having an ultimate controlling company in Cayman Islands”.

As it turned out, the Chinese director was allegedly the authorised signatory for all of the financial institution accounts maintained by the corporate in India and the identical have been being operated on-line from China.

“Role of the earlier directors of the company, Sushant Srivastava, Priyanka Khandelawal and Himanshu Garg, who resigned last year, is also under investigation,” the company had mentioned.