The Enforcement Directorate (ED) has seized Rs 8.26 crore in a case against Pigeon Education Technology India Private Limited under the provisions of the Foreign Exchange Management Act (FEMA), 1999. The ED issued an official statement on Friday stating that the company was owned by Chinese nationals and all financial decisions were being taken by individuals in China.
Investigation Reveals Siphoning of Funds
The ED investigation found that Rs 82.72 crore had been siphoned off to China and Hong Kong under the guise of advertising and marketing expenses, on the instructions of Chinese director Liu Can. The company was unable to provide any evidence of the receipt of services or any advertisements published in return for the expenses. During the investigation, the director and accounts manager of the company admitted that the payment was made only on the instructions of Liu Kan.
ED Cracks Down on Chinese Nationals
The seizure of funds is the latest in a series of actions taken by the ED against Chinese nationals and companies operating in India. The Indian government has been taking a hard stance against Chinese firms and their investment in the country. In the past, the Indian government has banned Chinese apps, such as TikTok, and Chinese companies have been barred from participating in government tenders.
Chinese Investments in India under Scrutiny
Chinese investments in India have come under scrutiny in recent years due to concerns over national security and data privacy. The Indian government has also been trying to reduce its dependence on Chinese imports and increase domestic production. The ED’s actions against Pigeon Education Technology India Private Limited are a sign of the Indian government’s efforts to crack down on Chinese companies operating in the country.
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