The Enforcement Directorate (ED) has made substantial strides in their ongoing investigation of Pigeon Education Technology India Pvt. Ltd. The ED’s recent actions have brought to light dubious financial transactions and illicit activities linked to the said organization.
A Spotlight on Pigeon Education Technology
ED recently announced the seizure of Rs. 3.94 Crore from Pigeon Education Technology under Section 37A of the Foreign Exchange Management Act (FEMA), 1999. This marks another significant move following a prior seizure of Rs. 8.31 Crore. As a result, the total amount confiscated under Section 37A of FEMA in this case has reached Rs. 12.25 Crore.
The organization under investigation operates in the sphere of online education, marketing its services under the brand name ‘Odaclass’. Investigations have disclosed a startling revelation – the entity is completely under the control of Chinese nationals.
The Depth of Malfeasance Uncovered
ED’s scrutiny has unearthed a comprehensive trail of suspect financial transactions leading to China and Hong Kong. The agency has disclosed that Pigeon Education Technology India siphoned off an alarming Rs. 82.72 Crore under the guise of advertising and marketing expenditures. These expenses, as per the directions of Chinese Director Liu Kan, lack concrete evidence of any service receipt or valid proof of advertisement published.
Admissions made during the course of the investigation by the company’s director and accounts manager further reveal that payments were only authorized under the instructions of the Chinese director. The Indian director of the company also revealed that these supposed advertisements were claimed to be published through prominent platforms such as Google and Facebook. However, no supporting documentation, including confirmations or invoices, has been provided thus far.
Conclusion and Ongoing Investigations
The revelations of the ED’s investigation into Pigeon Education Technology India Private Limited underline a case of severe financial impropriety. With the recent seizures and revelations of siphoned funds, the probe has only begun to uncover the depth of these illicit activities. The ongoing inquiry, expected to reveal further irregularities, highlights the importance of vigilant enforcement to safeguard economic integrity.
