ED Seizes Rs 8.26 Crore Funds from Chinese-Owned Online Education Company

New Delhi: The Enforcement Directorate recently announced the seizure of funds amounting to Rs 8.26 crore from a Bengaluru-based online education firm, which is wholly owned and controlled by Chinese nationals.

This action is part of an ongoing investigation into alleged violations of foreign exchange regulations. Under Section 37A of the Foreign Exchange Management Act (FEMA), the Enforcement Directorate has taken possession of the funds belonging to Pi Technology Private Limited. The company operated in th online education sector under the brand name “Odaclass.”

In April, the Enforcement Directorate conducted searches against the group and uncovered evidence suggesting that the company is entirely owned by Chinese nationals, with all financial decisions being made by individuals based in China.

The investigation further revealed that the company had transferred Rs 82.72 crore to China and Hong Kong, purportedly for advertisement and marketing expenses. However, the agency found no proof of services received or any evidence of the advertised campaigns associated with these expenditures.

During the investigation, the director and accounts manager of the company confessed that the payments were made solely based on instructions from the Chinese director, Liu Can.

The Indian director of the company, Vedanta Hamirwasia, claimed that Can had informed them that the advertisements were published through Google and Facebook. However, no documentation or invoices from these platforms have been provided to substantiate these claims.