Enforcement Directorate(ED) seizes Rs 8.2 crore from Odaclass Under forex offence

Directorate of Enforcement has seized Rs.8.26 Crore in the case of Pigeon Education Technology India Private Limited under Section 37A of the Foreign Exchange Management Act,1999. The company is providing online education in the name of Odaclass. Earlier ED had conducted search and seizure action against the company.

The ED concluded that it is entirely owned by Chinese nationals and including its finances, are controlled in China. The Chinese firm is suspected of diverting funds through shell companies and manipulating forex transactions. During the investigation, it was discovered that the company shifted Rs 82.72 crore to China and Hong Kong under the cover of advertisement and marketing charges on the directions of its Chinese director, Liu Can. Further investigation is going on .

Vedanta Hamirwasia, the company's Indian director, claimed that the ads were published on Google and Facebook. These platforms, however, did not generate any confirmations or invoices.

The ED has been cracking down on such violations and has taken strict action against those found guilty. The agency has also been working closely with other countries to curb illegal forex activities.

About ED

The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws. The origin of this Directorate goes back to 1st May, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 (FERA 47). This Unit with

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