INDIA: The Directorate of Enforcement (ED) on Friday seized Rs. 3.94 crore in the case of Bangalore-based Pigeon Education Technology India Private Limited (PETIPL) under Section 37A of the Foreign Exchange Management Act, 1999, thus bringing the total seizure up to Rs. 12.25 crore.
In an earlier action, Rs 8.31 crore was seized in May, and now an additional amount of Rs 3.94 crore has been confiscated for violation of Foreign Exchange regulations.
The company has been providing online education under the name “Odaclass”. The ED, during search and seizure operations in May this year, found that the company is 100% owned by Chinese nationals and that all the activities of the company, including financial decisions, were being taken by the persons sitting in China.
During the investigation, it was revealed that the company had syphoned off Rs. 82.72 crore to China and the Hong Kong Special Administrative Region of the People’s Republic of China 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 or proof of any advertisement published against the said expenses, an ED statement read.
The director and accounts manager of the company 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. No confirmation or invoice raised by these platforms was submitted.
PETIPL, a private company incorporated on August 30, 2019, is classified as a non-government company and is registered at the Registrar of Companies, Bangalore, in Karnataka.
The company, founded by Avinash Dayal and Divya Pathak, is located at Outer Ring Road, Kadubeesanahalli, Bengaluru. Atsushi Kawaguchi is the Managing director of the company. Its last Annual General Meeting was held on December 15, 2021.