The Enforcement Directorate (ED) in India has recently seized Rs 8.26 crore from Pigeon Education Technology India Private Limited, which is owned by Chinese nationals. According to a statement, the investigation has uncovered evidence that a large amount of money has been illegally transferred to China and Hong Kong from the company. It was revealed that Chinese director Liu Can gave instructions to make payments for advertisement and marketing expenses without providing any invoices or proof of services received on the company’s part.
To make matters worse, various persons working with the company have confirmed that all financial decisions are controlled by the people sitting in China. This has put the company under close scrutiny from the Enforcement Directorate, and now the seizure of Rs 8.26 crore as a result of such activities.
Pigeon Education Technology India Private Limited is focused on providing education portals which focus on providing learning activities and tools to enhance students’ learning experiences. It is based in New Delhi and its main shareholders are Chinese nationals. This has led to legal issues relating to the Foreign Exchange Management Act (FEMA), 1999.
Liu Can is the Chinese director responsible for the payment fraud. He has instructed the company to make payments for advertisement and marketing expenses, however there has been no proof of services received on its part. Vedanta Hamirwasia, the Indian director of the company, has also confirmed that the payments were made only on the instructions of Liu Can. The lack of proof of any advertisement published against the expenses has also raised questions for the company.
Overall, the investigation is still ongoing and the Enforcement Directorate has already seized Rs 8.26 crore from the Chinese-owned Pigeon Education Technology, which is a violation of the Foreign Exchange Management Act. It is possible that further investigations may lead to more charges being levied against the company.
